Release: Opt-Out Super Will Empower Workers
The Australian Taxpayers’ Alliance, a 75,000+ member grassroots advocacy group representing the nation’s taxpayers, today commended Liberal Senator for NSW Andrew Bragg for supporting an optional superannuation model for workers earning under $50,000 p.a. as it will grant workers more freedom of choice in planning their retirement and using their earnings, and will generate significant savings for taxpayers in the process. Under Bragg's proposal, workers will be able to tick a box that lets them immediately access contributions which would otherwise have gone into their superannuation.
"Hardworking Australians deserve greater say in planning for our retirement." said Satya Marar, Director of Policy at the ATA. "Compulsory superannuation is a windfall for the unions despite their falling membership rates, and often means less financial security for workers in the long run as they miss out on the opportunity to save and invest in a home or invest in other assets.
"With 4 out of 5 workers set to rely on the aged pension in the future despite our superannuation system, Senator Bragg is correct in questioning whether this system is working the way it was intended to. The savings that this model will generate can also be used to fund our pension system so it remains sustainable for those who depend on it.
"Superannuation will remain the default option and most workers are likely to continue using it and taking advantage of the tax concessions it brings. For others, the chance to access their own money ahead of time will make an immense difference to their real wages and living standards. For parents, it could mean the difference between sending their child to a better school and giving them more opportunities that will pay great dividends over the generations.
"Across the world, countries have built a strong culture of savings and an emphasis on securing one's own financial security which Australia presently lacks. This state of affairs isn't going to change if we expect the government to keep saving our money for us through mandated superannuation. Empowering workers with freedom of choice over their own earnings is both the logical and moral thing to do."