MRRT to pay Super?
As I understand it employers pay the workers superannuation so how come the MRRT is being touted by Swan as giving everyone an increase in superannuation guarantee;
“Around 8.4 million workers will enjoy a more secure retirement with the increase in superannuation guarantee.Paul Kelly in The Australian says;
Labor keeps implying the mining tax will finances the super increase from 9 per cent to 12 per cent. It doesn’t. At present, business is meeting this cost.Sinclair Davidson at Catallaxy says;
Strictly speaking it [Super] is paid by employers – they write the cheque – but the burden of superannuation falls on the employee. Wages are reduced to the extent of the superannuation payment. So an increase in superannuation contributions means a reduction in take-home pay.Some of it could be presumably used to pay public servant super but otherwise I still believe it is a means for Swan to balance his budget. And if you think, “well at least I have some money in super“, you want to remind yourself that Unions are very involved in management of superannuation funds courtesy of Keating. Good luck! Business will pay more super reflected in workers receiving correspondingly less in their pocket, or, business will shed labour, but overall unions will have more money to play with in their super funds. Sounds like an ALP plan. If they would just show some inkling of how wealth is created they might improve our situation but while their forte is wealth distribution only, there is no chance.