Finally, two months after their Federal conference, two months after hiding their policy platform, Labor has quietly slipped out their superannuation policy on the ALP website – and it’s dire news for small businesses around Australia.
Labor wants to give unions the right to determine which fund a small business contributes to when employees don’t make a choice.
The information on Labor’s website states:
“Awards should contain not-for-profit funds as the default fund.” ALP National Platform and Constitution 2007 page 110.
A not-for-profit super fund is code for a union run fund.
In addition, Labor believes super contributions, currently at 9%, should be increased to 15%.
Kevin Rudd and the unions want to force small business employers to contribute beyond the current 9% figure.
Forcing Australia’s 1.88 million small business owners to find additional money for each employee will mean lower wages – just like when Labor was last in government.
Many small business owners will have to let some staff go, forcing unemployment up – just like when Labor was last in government.
Kevin Rudd and Labor’s irresponsible ideas could potentially send thousands of small businesses to the wall – just like when Labor was last in government.
This stands in stark contrast to the Government’s incentive based policy to help low and middle income earners save for their retirement.
The Howard Government has contributed over $3 billion into the superannuation accounts of Australians over the first three years of the successful Super Co-contribution scheme.
This excellent result has been made possible by the Government’s doubling of Super Co‑contribution entitlements for the 2005-06 financial year.
As a result of this measure, $917 million has been injected directly into the accounts of 1.13 million people who made personal super contributions.
Kevin Rudd, Wayne Swan, Julia Gillard and the unions would send Australian small businesses to the wall.
The Howard Government will help Australian workers on low and middle incomes save for their retirement and lock in the gains of the last decade.