Three-Quarters Of Turkeys Vote For Christmas Super

20 Mar

From Yahoo!7 News:

Three-quarters of Australians support having the superannuation guarantee lifted to 12 per cent, an ACTU-commissioned survey has found.

The union movement is releasing polling results as the Senate prepares to vote on the mining tax, which would fund the three-percentage-point increase in the super contribution.

The online poll of 1000 people found 75 per cent of respondents to be in favour of the policy.

*Thump* *Thump*

Yes, dear reader.

That is the sound of your humble blogger beating his chest, to restart his shocked heart.

Stunning, is it not?

75% of people surveyed like the idea of getting money for nothing.

Because that is what the average Aussie thinks an increase in “compulsory superannuation” means.

More money for moi. Without doing anything whatsoever to earn it.

Little do they realise that any and every increase in compulsory superannuation, must be paid for by their employer.

And most Aussies are employed by small businesses, who are struggling like never before.

Indeed, there was a 48% increase in small business bankruptcies last year.

Your humble blogger has lots of anecdotal evidence from fellow small businesspeople, who say that they simply can not afford to pay extra superannuation, and will have no choice but to reduce hours and/or terminate staff if the government forces them to increase super contributions for their employees.

This survey is a classic example of turkeys voting for Christmas supper.

Because even if you are confident that your job will be unaffected, the fact is that you will suffer too if other people lose their jobs due to the government jacking up the rate of compulsory super.

How so?

Other people losing their jobs means one or all of the following consequences, that will eventually impact on you too:

Increased unemployment => reduced retail spending => more job losses => mortgage arrears increase => forced sales of homes => house price falls => bank “assets” value fall => bank credit ratings cut => increased cost of funding for banks => increased interest rates => more reductions in retail spending => more job losses => more mortgage arrears => more forced sales of homes => more house price falls => more bank “assets” value fall => more bank credit ratings cut => more increases in cost of funding for banks => more increases in interest rates =>  more reductions in retail spending => more job losses => more mortgage arrears => more forced sales of homes => more house price falls => more bank “assets” value fall => bank/s collapse => government taxpayer bailouts => “austerity” policy => increased taxes => more business failures => more unemployment => GET THE PICTURE?

At least there is one (1) politician who does seem to understand that small business is struggling, and simply can not afford to pay increased superannuation.

No, it’s not Barnaby Joyce.

It’s Andrew Robb:

TONY Abbott’s finance spokesman, Andrew Robb, has re-opened old divisions within the Coalition’s economic team over superannuation with an attack on Labor’s plan to boost workers’ retirement savings.

As Labor prepares to spruik the benefits of the super changes with – its new website – predicting workers could be $100,000 better off at retirement, Mr Robb has again raised concerns about the impact on small business.

The Sunday Herald Sun can reveal Mr Robb, a senior members of the Liberal leader’s economic team, surprised colleagues with an attack on Mr Abbott’s policy not to repeal Labor’s boost to workers’ super if he wins office.

Andrew Robb has been on to this danger since at least November last year:

OPPOSITION finance spokesman Andrew Robb was excluded from the meeting where the Coalition’s leadership group decided it would not oppose the government’s planned increase to compulsory superannuation.

Senior Liberal sources said Mr Robb was “ropeable” at the decision to exclude him from the Friday telephone hook-up between the opposition leadership group and assistant Treasury spokesman Mathais Cormann, chaired by the Opposition Leader, that decided to back the super guarantee rise.

The opposition finance spokesman is understood to be pushing a message that a Coalition government will need to live within its means. He is understood to believe that with federal debt approaching $250bn the superannuation increases are unaffordable. Mr Robb previously said that at a time when many small businesses were struggling they could not afford to pay the extra compulsory super.

Andrew Robb is right.

His being right means … of course … that his viewpoint must be excluded.

Even by his own party colleagues.

Ain’t “democracy” grand?

Oh yes … about that headline story, of all the turkeys voting for Christmas.

The respondents to the survey weren’t the only turkeys having their say:

ACTU president Ged Kearney said the next few days were the last chance to pass the legislation before parliament went into a long recess ahead of the May 8 budget.

“It is time for all parliamentarians, including the Liberals, Nationals, Greens and independents to stop putting at risk the retirement savings of working Australians,” she said in a statement.

Take three (3) wild guesses at who makes millions from fees and commissions (and more) on compulsory super for employees that is paid into UNION industry super funds?

Your first two (2) guesses don’t count.

Anyone else in favour of lifting the rate of compulsory superannuation?

The Australian Institute of Superannuation Trustees, the peak body for the $450-billion non-profit sector, is also delivering the government several thousand online and petition signatures.

Ummmmm … hello?!

What was it that Wayne has been banging on about lately?

Something about “vested interests” that are “threatening our democracy”, wasn’t it?

We are living in a nation populated, and ruled, by self-interested turkeys.

If only the ruled turkeys knew the consequences of voting for Christmas supper.

If only they knew that both sides of parliament already have formal policies and systems in place to steal their super, when the time is right.

*Gobble* *Gobble* ….

5 Responses to “Three-Quarters Of Turkeys Vote For Christmas Super”

  1. The Old and Unimproved Dave March 20, 2012 at 3:50 am #

    Hmm, did you choose Dr Teeth of the Electric Mayhem on account of the golden tooth ? Little reference to “putting your money where your mouth is”, perhaps ?

  2. Richo March 20, 2012 at 11:15 am #

    I willing to bet the ACTU did not mention that increases in super will result in a comparitive cut ot wage growth. Business cannot just generate an extra 3 per cent for wages out of their backside. The wage pie won’t get any bigger, just the slices will be divided differently.

    I don’t know why the Libs have not been making this point.

    I too commend Robb for his stance. Same credit should go to Mathias Cormann who also raised objections, and I think Arthur Sinodinous also had issues.

    Abbott’s problem is that listens to Hockey over Robb. BIG MISTAKE!

  3. kelly liddle March 20, 2012 at 1:59 pm #

    The political considerations must be considered and it is easy to say don’t support it even though 75% of the population does rightly or wrongly. My personal view is that I support raising super but with major qualifications which do not exist at the moment. As in I don’t support now but I could.

    My major issues are: That there is no requirement to use a percentage of the super payout as a pension which means many pensioners are just blowing there super to go on the old age pension not saving the public purse much, That the super industry is opaque and not subject to the same standards as listed companies which they should be (including so called not for profit and any not for profit organisation should declare all incomes of workers so outsiders can see if they are not for profit including charities etc.), Wages should be held back including increases in the minimum wage in an open way so people realise that this money to increase their super is wages.

    The tax cut of company rate means nothing to small business. Most small businesses are not incorporated and those that are have to be making relatively good profits for it to make a difference.

    I suspect if my qualifications were met the support for increased super may not be so forthcoming.

  4. Bob Massey March 20, 2012 at 4:19 pm #

    I think Compulsory Superannuation was one of the worst things to do the Australian wage earner because I see very little return for very high subscription rates and associated charges by the required Financial Advisors. Sure you can invest in your own Super fund now but as the years have gone by I have had very little return from my money.

    As was indicated recently in one of the newspapers you could have saved more by putting the 9% compulsory super into a standard bank account. This is just another government push to get their hands on your money, After all a 25% increase in Super means a 25% increase in Tax.

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