The Secretary of the Australian Council of Trade Unions, Greg Combet has used an attack against the Federal Government’s proposed industrial relations laws to renew his call for the superannuation guarantee to be lifted to 15 per cent.
Combet used an address to the national press club to claim the Government’s industrial relations agenda was counter-productive and that more thought should be given to growing the Australian economy including ensuring people were adequately prepared for retirement.
“Over the next 40 years the proportion of Australians over the age 65 will double to 25 per cent [of the total population],” he said. “Without appropriate action the workforce participation rate could fall from 64 per cent to 56 per cent over the same period.”
Combet said that health and aged care expenditure would have to multiply but questioned what was being done to prepare for this or to invest in the future via a strategy to build retirement savings.
“I have stated here on previous occasions that the level of contributions to superannuation must be increased to 15 per cent from the current 9 per cent, and the sooner we start on this strategy the better for the country,” he said.
“These savings would provide a substantial pool of capital for investment as well as providing for health and living costs in retirement,” Combet said. “Simply put, Australia needs an investment-led reform agenda focussed on the supply side of the economy. That is what will produce the next productivity revolution.”
