VACC Calls for a Meaningful Contribution to Superannuation

MELBOURNE – Aug 17, 2010: “Small business owners should not bear the whole cost of superannuation increases.” That is the view of VACC Executive Director, David Purchase.

While the debate over the best way forward for superannuation in Australia continues, VACC has today confirmed that it supports a good superannuation system but not at the expense of milking employers dry.

“Everyone works hard during their working lives and deserves to be able to retire in the knowledge that they can live a comfortable life, without having to worry about the finances,” VACC Executive Director, David Purchase, said.

VACC, which represents approximately 5,500 small businesses in Victoria and Tasmania, accepts that small business owners should contribute to their employees’ super fund, but that they should not be expected to do it alone.

In ‘VACC’s Issues for the 2010 Federal Election’, it calls on the next Federal Government not to increase the superannuation burden on small business owners.

“To increase superannuation contributions from 9 to 12 percent, as proposed by the Federal Government, is not a bad thing. In fact, a 12 percent superannuation contribution is a good idea because it will assist our ageing population to have a well deserved retirement. But this increase should be paid for out of taxation receipts or foregone wage increases,” Mr Purchase said.

“We were led to believe that the increased contribution would come out of the ‘super profits’ from the resources mining tax. But as we now know, this was never the case and so how is it going to be paid for?” said Mr Purchase.

“Business owners already contribute a lot to society by providing employment, security, workcover, insurance and, in some cases, health plans. Superannuation is yet another obligation. But let us spread the responsibility evenly and create an environment in which all parties, including employees themselves, provide a meaningful contribution,” Mr Purchase said.