Ageist policy overturned

When Bill Shorten introduced the government’s legislation to increase the superannuation guarantee from nine to 12 per cent yesterday, he also made one other, more surprising announcement.

Above: Chief executive of National Seniors, Michael O’Neill

By Stephen Easton

In a surprise move, Assistant Treasurer Bill Shorten announced yesterday that the government would remove the age limit for compulsory superannuation contributions made by employers, at the same time as it raises the superannuation guarantee from nine to 12 per cent.

According to Mr Shorten, older Australians can thank four Labor backbenchers and two cross-bench independents, Tony Windsor and Rob Oakshott, whose “strong representations” resulted in the decision to scrap the age limit altogether, instead of raising it to 75 as the government had originally suggested.

“Australians should not have to work hard and retire poor,” Mr Shorten declared in a statement released yesterday. “Nine per cent super is simply not enough.”

In abolishing the age limit, the Assistant Treasurer has not only taken on board the lobbying of members of his own party and the cross-bench, but also appeased a growing movement in support of the policy, which was first announced in February by the Opposition.

Bronwyn Bishop, as Shadow Minister for Seniors, introduced a bill to parliament to abolish the age limit, but in May discusson was adjourned on constitutional grounds because it would involve government spending – on superannuation for public servants aged 70 and over – after the budget had been announced.

Mr Shorten said increased costs to the government resulting from the changes would be partly funded through revenue from the Minerals Resource Rent Tax, which Tony Abbott has threatened to repeal if his party wins government in 2013.

The move has received a chorus of support around the nation, including from the Age Discrimination Commissioner, Susan Ryan, as well as Australia’s largest lobby group for older Australians, National Seniors, who have been among those lobbying hard for the age limit to be abolished.

National Seniors chief executive, Michael O’Neill, released a statement saying Mr Shorten had earned a big tick from older Australians.

“On the right for older Australians to have equal access to superannuation, this government has put their money where their mouth is,” Mr O’Neill said.

“Currently, employers are not required to pay superannuation towards workers aged over 69. Basically, this means the clock ticks over and you lose your super.

“It sanctions, at the highest level, the notion that seniors are worth less than their younger colleagues, and contradicts the bi-partisan view that we will all work longer as the population ages.

“National Seniors would like to thank parliamentarians from all sides who’ve supported the campaign to end one of the many disparities that exist for older workers.”

The changes will take effect from 1 July 2013, under legislation introduced to parliament yesterday to amend the Superannuation Guarantee (Administration) Act 1992.

Tags: government, national-seniors, older-australians, superannuants, superannuation, workforce,

2 thoughts on “Ageist policy overturned

  1. Combined Pensioners and Superannuants Association has not welcomed the abolition of the Superannuation Guarantee age limit for a few reasons:

    1. The abolition is subject to the mining tax passing, which is not certain. Also, why would the abolition of a piece of age discrimination be conditional on another piece of legislation passing? We can see the link between the SG increase and the mining tax, but not the link between the SG age limit and the mining tax.
    2. While there would be no age limit on SG contributions, the 75 age limit will continue to apply to concessional and non-concessional contributions. Quite a few better-off over-75s will be dismayed to find out that they can’t put their savings-outside-super into super.

    Having said all that, it will of course be of benefit to those over-70s still working. However, Combined Pensioners and Superannuation Association felt in no way compelled to join the jubilating chorus.

    Paul Versteege
    Policy Coordinator
    Combined Pensioners and Superannuants Assoc

  2. This is very pleasing to see acknowledgement, recognition & value to the older (late 60’s) people who find themselves still needing to be employed full time (a long time career as a registered nurse and not prepared to throw away this knowledge and experience)by still be considered along with every other employee.

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