The Labor Party has stepped up its attacks on the Morrison government as it weighs a freeze of the legislated super increase, with former prime minister Keating blasting the Morrison government for trying to “drain money out of the bottom of the system and stop money coming into the top of the system”.
“The government is gearing up to use the COVID health emergency to destroy the superannuation system,” Mr Keating told media.
“All those baby-faced Liberals who are attacking the SG increase all the time are going home every week with 15.6 per cent super, and of the 12 per cent that Parliament has legislated, they’re saying ‘it’s too good for them, let’s push them back to 9.5’. I mean, the gall of it. The heartlessness of it. The unfairness of it. And of course, the breach of the election promise of it.”
Mr Keating has become an increasingly vocal opponent of government super policy in recent months, drawing the scorn of assistant minister for superannuation Jane Hume who has slammed his position as “arrogant and elitist” and accused him of protecting his legacy at the cost of the financial security of everyday Australians.
“It’s your money,” Ms Hume said in August.
“Not government’s. Not the super funds’. And insiders who don’t have to worry about their next paycheque shouldn’t lecture you for accessing it when you need it most.”
LNP senator Gerard Rennick, who has previously accused the Labor Party of being communists “bobbing their head to every command” issued by “their Big Brother” (industry funds) has also challenged Mr Keating to a public debate on superannuation policy following his comments about “baby-faced Liberals” – comments widely understood to apply to senator Andrew Bragg, but which Mr Rennick believes were directed at him.
“It’s time your arrogance and ignorance were called out,” Mr Rennick said.
“I am more than happy to debate you publicly as to why it’s time for a new way of thinking in Australia and why your legacy should be confined to the dustbin of history where it belongs.”
Meanwhile, former prime minister Rudd has also accused the Morrison government of using the early release scheme to gut retirement incomes and do the heavy lifting through the economic recovery.
“We’ve had the Morrison [government] rip out $40 billion plus from people’s existing superannuation accounts, and the reason why they’ve done that is they haven’t had an economic policy alternative other than to say to working families, “if you’re doing it tough as a result of the COVID [crisis], then you can go and raid your super”,” Mr Rudd said.
“That’s all fine and dandy, but when those working people go and retire in the decades ahead, they will have gutted their retirement income. And that’s because this government has allowed them to do that – and has forced them to do that – in the absence of an economic policy alternative.”
Treasurer Josh Frydenberg has done little to dissuade the former leaders from their thinking, saying the government was still actively considering freezing the increase amid fears that it would hit wage growth.
“We have heard from a range of figures, including the [governor] of the Reserve Bank recently, when he said that ultimately, an increase in the superannuation guarantee will mean lower wages,” Mr Frydenberg told media.
“Lower wages means lower income, lower income means less spending, less spending means less jobs. And so ultimately what we have to consider is the timing of that particular issue… whether it’s from ACOSS, whether it’s from the Grattan Institute, whether it’s from the RBA, whether it’s from the Small Business Association, you’ve heard their concerns about the superannuation guarantee issue.”
However, Mr Frydenberg said that was superannuation “is a good thing” and a “massive asset for the nation”, and that the government would not be making a decision in the short-term on the issue of the increase.
