VACC: Small Business Owners call for Clarity on Superannuation Payments

MELBOURNE – Nov 23, 2011: VACC has called on the Federal Government to make it clear who will be funding the proposed increase in superannuation contributions. VACC has questioned how its 5,500 small business members, already under severe financial pressure, are expected to increase contributions to an employee’s super fund.

“We were under the impression that the additional contributions would be paid for out of the Mining Tax, but this now appears unlikely,” VACC Executive Director, David Purchase, said.

“VACC is not opposed to increasing superannuation contributions, because 9 per cent is not enough for a lot of people to finance the lifestyle they desire when they retire from work. However, this additional burden should not simply be imposed on employers; employees should also be required to contribute.

“Small business owners already pay more than their fair share of taxes and contributions to governments and the community, and to hit them with an extra cost is too much to expect.

“Superannuation is an important issue and to link it to the Mining Tax has led to confusion. It is not clear if, or how, the Mining Tax will benefit retirement funds. Small business owners, and employees, deserve better than this.

“VACC, in close consultation with ACCI (Australian Chamber of Commerce and Industry), has questioned the Gillard Government’s handling of the superannuation levy. Together, we call for a stand-alone discussion on Australia’s superannuation fund contribution system, with greater consideration for small business owners,” Mr Purchase said.