Government should pay part of super to help small businesses

5 February 2009
| By Benjamin Levy |

Chris Pearce, the Shadow Minister for Financial Services, Superannuation and Corporate Law, has suggested paying out a portion of the superannuation guarantee obligations on behalf of small business employers to help them with their cash flow. The proposal would run for a period of two years.

Pearce said the measure would protect 3.8 million jobs.

“Our proposal would mean that the Commonwealth would contribute a substantial portion of the superannuation guarantee payments that employers are required to make on a quarterly basis,” Pearce said.

The proposal would maintain and contribute to the Coalition’s long-term policy of fostering growth in super and enhance the adequacy of super accounts, Pearce said.

The proposal was likely to save jobs and sustain the level of super contributed to retirement, according to industry sources, the release said.

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Westpac has delayed its rate cut forecast, aligning with its peer NAB’s outlook on the likely trajectory for the Reserve Bank of Australia’s cash rate....

1 hour ago

The government’s adjustment to the Future Fund’s mandate could set a dangerous precedent, warns an economist, raising concerns that it may pave the way for problematic fu...

38 minutes 53 seconds ago

The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remain...

2 hours ago