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SGL: $122 billion super slug on employers



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SENATOR ALSTON Melbourne TEL No. 03 866 3105 0 9 , 0 4 , 9 2 9:5 3 P.02

i Richard Alston

SHADOW MINISTER FOR RETIREMENT INCOMES

NEWS RELEASE

SGL: $122 BILLION SUPER SLUG ON EMPLOYERS

In an address today to the Superannuation '92 Conference at the Sebel Townhouse, Sydney, Senator Richard Alston revealed. that the prescribed superannuation contributions to be imposed as a result of the Superannuation Guarantee Levy . (SGL) would cost business an estimated $122 billion over the next 9 years · the period in which SGL prescribed payments are to be phased in.

"On the basis of Murphy model predictions of the wag» share of GDP and assuming that 20% of the wages bill relates to employers with payrolls below $600,000 and that 15% of the annual national wages bill consists of overtime and other add-ons, a stark picture emerges.

Over the next nine years employers will be required to shell out in today’s dollars $122 billion in prescribed contributions - $21.9 billion * for small business and $100.1 billion for others,"

said Senator Alston, adding that such an impost was particularly inappropriate given that we are in the middle of the worst recession in 60 years and that unemployment is expected to remain close to its current high level for several years to come.

Part-time and casual workers will also be seriously disadvantaged by the SGL with most, if not all their contributions being eaten tip in fbnd administration" and V / insurance fees. Those not in the workforce would also be disadvantaged, once again being disenfranchised from having access to superannuation and its attendant

benefit»,

"Given that of the 1.3 million casual workers in Australia, 63% are women and that 80% of the 1,9 million Australians of working age not in the workforce are women, the Superannuation Guarantee Levy must . be one of the most blatantly sexist pieces of legislation ever to hit the floor of the Australian Parliament," .

In comparison, the Coalition’s Figh tback! superannuation proposals will allow part­ time and casual workers as well as those not In the workforce the opportunity to access affordable superannuation coverage.

Senator Alston also said that the SGL would produce higher and more sustained inflation than the Coalition’s goods and services tax (GST).

EfiL ♦ information call: [06] 277 3608 or [03] 866 34G5. 7 April 1992.

APR 9 ’ 92 9 : 5 4

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