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‘Of all the rorts’
Debate heats up over future
of superannuation.
S
uperannuation reform is again at the
forefront of political debate, with
calls to raise contributions and do
away with them all together ringing out
simultaneously.
The compulsory superannuation
guarantee is set to rise from 9.5 per cent
in five annual increases starting from July
2021, taking it to 12 per cent from 1 July
2027. However, there is some talk among
Liberals as to whether the guarantee
should be frozen, and last year Finance
Minister Mathias Cormann ruled out
bringing forward the current timetable.
First-term Liberal National senator
Gerard Rennick has vowed to agitate
within the Coalition government to make
superannuation voluntary.
“Of all the rorts that exist in this country,
nothing compares to superannuation,”
he told parliament. “Superannuation is
devouring the real economy.”
Rennick launched his attack on super
during debate on legislation to give a
one-off amnesty to bosses failing to pay
workers their full guaranteed entitlement.
“At the end of the day, super isn’t
working,” Rennick said.
Labor frontbencher Jenny McAllister said
the amnesty was outrageous and sent the
message that wage theft was acceptable.
“If you’re an employee and you steal
from your employer, you’ll have the book
thrown at you,” she said.
“If you’re an employer and you want to
steal from an employee, no worries, as
long as you say sorry.”
She said while there was an estimated
$2.8 billion in super underpayments in the
Aged Care Minister Richard Colbeck, Prime Minister Scott Morrison
and Government Services Minister Stuart Robert at a press conference
on aged care at Parliament House in Canberra. Photo: Mick Tsikas
$50m boost
Government announces
new fund for struggling
aged care providers.
A
ged Care Minister Richard Colbeck
has announced a $50 million
investment fund aimed at helping
struggling providers.
The Business Improvement Fund will be
available to eligible businesses to improve
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agedcareinsite.com.au
business strategies, maintain services while
the residence is sold to another provider,
or “where there is no other option” to help
close down a facility in a safe manner.
Colbeck said the fund would help
providers manage costs without
compromising the care of residents.
“We recognise that the expectation
of higher quality and appropriate care
for our loved ones comes at a cost, and
past 26 years, no evidence of widespread
overpayments had emerged.
At state level, the Andrews government
in Victoria has called for an immediate
rise to 12 per cent and set out a plan for
an eventual rise to 15 per cent.
In its submission to the federal
government inquiry into retirement
incomes, the Andrews government also
made a number of recommendations
aimed at making sure women enjoy
the same financial security in retirement
as men.
Victorian Treasurer Tim Pallas said
women are currently penalised for
taking time out of the workforce to have
children, as they do not earn super on
the Commonwealth’s paid parental leave
scheme. He said the average woman’s
superannuation balance at the time of
retirement in the 2015–16 financial year
was $157,050, compared with $270,710
for men – a “superannuation gap” of 42
per cent.
“The superannuation system ... needs
refreshing to stamp out the discrimination
that some Victorians face,” Pallas said. ■
some providers need help to meet these
standards,” Colbeck said.
The announcement also stated that
eligible providers affected by the recent
bushfires would be prioritised along
with those providers that have used the
government’s Business Advisory Service.
Eligibility will be judged on a provider’s
financial position. The provider must have
limited access to other funding sources
and a clear strategy for improvement.
Aged care peak body Leading Age
Services Australia (LASA) welcomed the
investment and said it was recognition
of the challenges faced by residential
aged care.
“This is a positive step, as long as it
is the precursor for a major increase in
operational funding for the quality care
of thousands of older Australians,” LASA
chief executive Sean Rooney said.
“Almost every week, LASA hears about
another residential care home struggling
to make ends meet. This raises the risk
of incidents of missed care and is creating
an uncertain future for many services,
given we are already seeing services
closing in some communities.”
Aged and Community Services Australia
also welcomed the announcement but
asked that the government go further and
commit to more funding sector wide. ■