The Australian Chamber of Commerce and Industry has pleaded with the Government to separate the mining tax from the legislation that will boost superannuation contribution rates to 12%, saying the move is so substantial it needs its own analysis.
But the move comes despite the Government being content on speeding ahead with the plan, while the Coalition has also said it intends to keep the 12% rate intact if it wins government at the next election.
“The fact the Opposition has said it doesn’t intend to reverse the legislation that may be passed, simply highlights the importance of giving the superannuation guarantee legislation the full scrutiny and debate it deserves,” ACCI chief executive Peter Anderson told SmartCompany this morning.
The plea comes as the Government moves to pass the mining tax legislation this week; both bills are part of the same bundle of legislation.
Anderson wrote yesterday the plan will increase superannuation amounts by an extra $20 billion per year, and made two recommendations. The first is that the Government should de-couple the superannuation bill from the mining tax bill, and deal with it separately.
“Doing so would recognise that the Superannuation Bill has such significance on employers and retirement incomes policy that it deserves objective analysis in its own right.”
Anderson also wrote that if the legislation is passed, it will ruin any chance of having the move from a 9% rate to a 12% rate being partially funded by a wage trade-off.
“Unions would have no incentive to discount future wage rises for an obligation imposed by the Parliament on employers. The Government’s planning funding basis would be seriously undermined.”
The warning comes as the independents have secured a deal with the Government that will ensure the passage of the tax, raising the threshold of the tax from $50 million to $75 million, which will reduce the number of companies that bear the full cost.
Independents also won a guarantee for the Federal Government to intervene in some projects if water resources are threatened, along with $50 million in incentive payments for states to increase support higher regulation in some mining sectors. Altogether, the concessions cost about $300 million over five years.
Although the Greens have objected to raising the threshold for small miners, the Government has reportedly said it is confident of getting a deal finalised this week.
Finance minister Penny Wong told the ABC this morning the Government is working on making up the $20 million lost in raising the threshold, with the Greens having warned its support would be contingent on that gap being plugged.
“In terms of the various elements that have been agreed, we will make provision for them and they will be reflected in the updated figures,” Wong told the ABC.
Talks are set to continue today.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
