MELBOURNE, 18 October 2024: The Australian Council of Trade Unions (ACTU) has in a strongly worded statement, slammed Shadow Treasurer Angus Taylor saying the Coalition’s ambition being to “aligning superannuation with other global retirement schemes – like (America’s) 401k”. The Shadow Treasurer expressed his mind in a speech at the Sydney University on 16 October night.
“A 401k plan is a retirement savings account offered in the United States. Individuals can contribute their portion of pre-tax income to a dedicated account. On the other hand, superannuation is a retirement scheme used in Australia”, says Reliable Accoutants.
The ACTU fears the Shadow Treasurer’s words on super give a strong signal yet that it would dismantle and Americanise Australia’s compulsory super system if it were to return to office. Federal elections are likely to be held on or before 27 September 2025 to elect members of the 48th Parliament of Australia. Currently, the ALP has 78/151 in the House of Representatives and 25/76 in the Senate.
ACTU Assistant Secretary, Joseph Mitchell says, “Angus Taylor’s pronouncement he wants Australia’s super system to be Americanised should send shivers down the spines of Aussies. Every worker in Australia has the right to be paid superannuation and have that entitlement preserved for retirement. Australia’s superannuation system is the envy of the world, with strong returns, robust governance, and providing enormous security for working people.
In this speech, Angus Taylor has let the cat out of the bag that they don’t believe in every worker having retirement savings and instead want to return to the bad old days where super was just for the well off. The Liberals froze workers’ super when they had the chance, are planning to force workers to raid their retirement savings just to get into the housing market, and just this week floated that women should have to raid their super to deal with the costs of domestic violence or divorce.
This is a clear sign that workers’ super and their retirement are not safe under Peter Dutton.”
The ACTU statement says:
The ACTU leadership condemned the comments as further evidence that the Coalition’s dream of dismantling super is alive and well and extends beyond allowing withdrawals from superannuation for the purpose of purchasing a first home.
This policy would lead to the effective dismantling of Australia’s compulsory superannuation system in favour of a voluntary approach to retirement savings, in which bosses can choose to offer a retirement plan as a work ‘perk’, but they do not have to.
In the Australian system every worker has a workplace right to superannuation paid on their wages, preserved until retirement. In the United States, 401Ks are optional, not preserved for retirement, often plagued with issues like high fees, low returns, and are regularly subject to misuse by employers using the money for corporate purposes.
Australia’s superannuation system is consistently rated as one of the best in the world, with phenomenal growth, returns, and strong independent governance shielding members’ funds from misuse by corporate actors.
