The Guardian 26 April, 2006
Costello plans super swindle
Treasurer Peter Costello is mulling a plan to snatch billions of dollars a year from working women. A Federal Government taskforce wants millions of low-income earning women denied superannuation in a bid to cut "red tape" for business.
The Taskforce on Reducing Regulatory Burdens on Business has called for the income threshold for compulsory employer superannuation contributions to be lifted from $450 a month to $800 a month.
The taskforce, operating under the auspices of the Productivity Commission, made the recommendation in Rethinking Regulation Report, in January. The recommendation (No 5.49) was buried on page 126 of the Report.
"Employers in industries with high staff turnover and/or a large number of itinerant workers are particularly concerned about the need to make small, one-off contributions", the Report said.
Greater casualisation of the workforce and heightened downward by employers pressure on wages and conditions under WorkChoices is likely to drive up labour turnover. Removing the obligation on employers to make superannuation contributions for around one million Australian workers, the majority of the them women, will make it easier administratively and cost less to hire and fire workers by not only reducing the cost of making a payment but also in a reduction in administrative costs.
"The Taskforce acknowledges that this will reduce superannuation guarantee coverage and may disadvantage some long-term casual and part-time workers in particular", says the report.
The report also recommends that employers should be allowed to use a quarterly exemption threshold — that is multiply the monthly exemption by three and apply it over three months.
Thus any worker being paid less than $2,400 in three months would be denied their right to superannuation contributions from their employer. Under WorkChoices this would give employers huge scope to manipulate working hours and wages to avoid making superannuation contributions on behalf of their workforce.
"This makes a mockery of the Howard Government’s claim that it is good for working women", said Unions NSW Assistant Secretary Mark Lennon. "Now they face the double whammy of a bleak retirement after having their working conditions reduced under WorkChoices.
Superannuation fund trustees have also warned the government against lifting the threshold. "It is a backward step to push up the threshold", said Vice President of the Australian Institute of Superannuation Trustees, Andrew Whiley.