Published: 05 May 2021
Rogue government MPs plan to hijack the super guarantee increase to meet the costs of fixing Australia’s aged care system would create a tax by stealth that will leave everyone worse off.
A new Industry Super Australia report (https://www.industrysuper.com/media/hijacking-the-super-increase-why-forced-saving-for-aged-care-will-leave-australians-worse-off/) outlines how ringfencing the legislated super increase to pay for increasing aged costs is an inefficient and deficient proposal that could harm many Australians quality of life in retirement.
The Royal Commission into Aged Care found systemic issues with aged care and it would remain fundamentally broken unless there was a multi-billion-dollar annual injection of funding.
Deloitte had estimated it would cost more than $15 billion a year to fund a quality aged care system, but the government has indicated it is against creating a levy to fund aged care.
But hijacking super would be nothing more than a levy by stealth. It would force everyone to pay for aged care, regardless of if they ever need to use it. As Australia’s population ages more will need care homes but now only 4% to 6% of those over 65 require residential aged care.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.