Make superannuation progressive (at GetUp!)

Although the Superannuation Guarantee (SG) is mandated by the Federal Government, it isn't classified as a tax because it isn't paid to the Government...

In all other respects, however, Australia's federally mandated, employer-funded 9% superannuation contribution is equivalent to a federally-FUNDED 9% contribution (whereby the highest-paid workers get the biggest subsidies to their saving), financed by a 9% federal payroll tax (which is regressive and inefficient...)...

The two components could be made more sensible if the SG were brought "on budget" -- that is, officially redefined as a federal super contribution funded by a federal payroll tax, which might be called the "SG levy".

The new SG levy... would be made PROGRESSIVE by introducing a threshold...

Meanwhile all employees, including those whose wages/salaries are below the threshold, would receive super contributions funded by the levy... For example, every citizen of working age who satisfies an activity test might receive a FIXED contribution. And the activity test might recognize unpaid work to ensure that workers with interrupted careers are not disadvantaged.

If the threshold were high enough, most wages and salaries would be under it and would escape the levy, so that most citizens would be made more employable without reducing their take-home pay. In particular, there would be more entry-level jobs for the unemployed.

More: http://t.co/OgbYweY .