Date posted: 28/08/2020 3 min read

CA ANZ calls for pause to superannuation increase

Chartered Accountants Australia and New Zealand (CA ANZ) is calling for Parliament to support a pause to the increase in compulsory superannuation.

“The midst of a pandemic and a recession is not the time to add more financial burden to small businesses already struggling to cope,” Tony Negline, CA ANZ’s Superannuation Leader said.

The Superannuation Guarantee is scheduled to increase 0.5 per cent to 10 per cent next year, before moving to 12 per cent by 2025.

CA ANZ says Parliament needs to support the pause because economic conditions require the focus to be on reducing business costs, not increasing them.

“Let’s be very clear, Chartered Accountants understands the value of a strong superannuation system,” Mr Negline said.

“Superannuation was put in place to ensure people have enough money to live off when they retire - it is one of the pillars of Australia’s retirement system.

“But the events of this year, from bushfires to pandemics, have been extraordinary with small businesses financially slammed.

“Many Chartered Accountants are already engaged in tough conversations with struggling businesses given the continuing economic uncertainty.

“Coronavirus has meant a decline in turnover and difficulty with cashflow; with many struggling just to keep staff employed.”

“Adding yet another layer of expenses to small businesses during a recession lacks commonsense - it could result in stagnant wage growth, limited investment, and the continued fall in employment.

“The compass to guide the nation in this decision is the Retirement Income Review report. We look forward to Government releasing this document in the near future so we can have a better informed public discussion.

“We need to be making it easier, not harder, to boost the economy for businesses to invest and for jobs to be created.

“The fact is, for Aussie families battling their budgets due to COVID-19, money in their pockets now is more important than later.

Coronavirus pressure to push pause on increase in super guarantee

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