Federal government moves on superannuation are setting up a tragedy for young people, Tasmanian Labor says.
“The Morrison Government’s reckless attacks on superannuation have created a ticking time bomb,” Shadow Treasurer David O’Byrne said.
“Up to 80,000 Tasmanians have been forced to access their own super savings to prop themselves up through the pandemic; 10,000 of them have withdrawn all of their retirement savings.
“If that wasn’t bad enough, the government looks almost certain to cancel a planned increase to the superannuation guarantee.”
Mr O’Byrne said many Tasmanians were doing it tough.
“We also know these policies impact disproportionately on the young and, tragically, it’s them who’ll pay the biggest price in retirement by draining their super funds now,” he said.
Tasmanian Finance Minister Michael Ferguson supported giving people access to superannuation drawdowns to help them through the coronavirus period.
“The coronavirus pandemic has presented circumstances that have been unique in our lifetime and has demanded unprecedented measures at a state and federal level as restrictions were implemented and will continue to do so during the recovery phase,” Mr Ferguson said.
“The federal government’s policy of allowing individuals to access their own superannuation savings to assist them through the height of the coronavirus restrictions is supported.
“It has also saved numerous businesses and jobs.”
Mr Ferguson said he was not in a position to speculate on the federal government’s superannuation policy or its ongoing response to the pandemic.
“The bottom line is that this has been an unprecedented economic shock and governments have had to move quickly to help people in as many ways as possible,” he said.
“If state Labor have decided to oppose the support measure now that it’s in the past, it shows how hollow they have become.”
The rate of compulsory superannuation payments is scheduled to increase from 9.5 per cent to 10 per cent in July 2021, before reaching 12 per cent by 2025.
Some Coalition MPs want the planned increases scrapped.
Reserve Bank governor Philip Lowe recently said increasing the superannuation guarantee rate would weaken wages growth and spending and might cost jobs.