One of Prime Minister Scott Morrison's own MPs has called for the abolition of mandatory superannuation for people on low incomes.
Liberal senator NSW Andrew Bragg argued that super contributing had deprived poorer Australians of enough savings to buy a house.
The former policy director at the Financial Services Council, who represents super funds for the retail trade, contradicted his previous employer when he delivered his first speech to Parliament on Thursday.
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One of Prime Minister Scott Morrison's own MPs has called for the abolition of mandatory superannuation for people on low incomes (the photo is a stock image of barista & # 39; s)
With mandatory mandatory super contributions from employers rising from 9.5 percent to 12 percent from July 2025, Senator Bragg said that lower-income earners should be given the option to abandon superannuation altogether.
& # 39; Super should be voluntarily made for Australians who earn less than $ 50,000 & # 39 ;, he told the senate.
& # 39; Taxpayers can easily check a box to get a refund when filing an annual tax return.
& # 39; Certainly, the case was not made for an ever larger super. I would change direction. & # 39;
Senator Bragg, a liberal moderator, said economic modeling he had commissioned from Rice Warner actuaries estimated that taxpayers would save $ 1.8 billion in the first year alone.
He argued that money earmarked for superannuation, low-income employees and middle incomes had less money to save for a mortgage deposit.
New South Wales liberal senator, Andrew Bragg, argued that super contributing had deprived poorer Australians of enough savings to buy a house
& # 39; Super makes home ownership so much harder for lower-income Australians, & # 39; said Senator Bragg.
The Center for Independent Studies, a center-right think tank, found that the average investment for a first home had doubled between 2000 and 2015.
Earlier this week, Liberal backbencher Tim Wilson said that Daily Mail Australia employees should have the option to opt out of superannuation.
& # 39; It is wise to consider options, including whether it is better to give people the choice to raise wages today rather than higher superbalances later, & he said.
Liberal backbenchers lead a revolt against superannuation increases after the Grattan Institute think tank calculated that raising mandatory super contributions to 12 percent would rob a 30-year-old employee, with an average income of $ 55,400 a year, of $ 30,000 until retired 67.
Earlier this week, liberal backbencher Tim Wilson (right of husband Ryan Bolger) said that Daily Mail Australia employees should have the option to opt out of superannuation
Senator Bragg argued that since the arrival of the mandatory super in 1992 & # 39; every age group has experienced lower levels of home ownership & # 39 ;.
He failed to mention that the net annual level of immigration had tripled in the last two decades, with the majority of newcomers moving to Sydney and Melbourne, where real estate is particularly unaffordable.
The new senator for NSW, who recently moved from Victoria, has also argued that it is unlikely that the mandatory super will significantly reduce the dependency on the retirement pension in the next 36 years.
& # 39; The latest intergenerational report found that about 80 percent of people would take a public pension in 2055 & he said.
& # 39; That's not good enough after 70 years of mandatory superannuation. & # 39;
With mandatory mandatory super contributions from employers rising from 9.5 percent to 12 percent from July 2025, Senator Bragg said that those who earn less than $ 50,000 should be canceled completely for superannuation (pictured are Australian banknotes)
Australia's superannuation savings are now worth $ 2.8 trillion, or nearly a third more than Australia's $ 2 trillion economy, making it the fourth largest private pension pool in the world for a country with 25 million people.
Senator Bragg previously worked for the Financial Service Council, a lobbying group for retail super funds that are known for charging fees.
& # 39; The super industry contains layer after layer mediation, with the same request from the government: ever higher mandatory contributions & # 39 ;, he said.
& # 39; As legislators, it is our duty to focus on the public interest. I don't believe this system works for Australians. & # 39;
The Labor government of Paul Keating introduced mandatory superannuation in 1992 and determined in 1995 that it should reach 15 percent, but John Howard's coalition government canceled it and maintained the rate at nine percent.
In 2010, the Labor government of Julia Gillard enacted legislation to increase the superi contributions to 12 percent by July 2019.
The coalition government of Tony Abbott in 2013, however, postponed this increase.
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