The Australian Government should not proceed with the increase in the superannuation guarantee planned for 1 July 2021, Chair of the Australian Trucking Association David Smith said today.
Mr Smith was releasing the ATA’s 2020-21 budget submission.
“Increasing the superannuation guarantee would come at the cost of lower wages growth for workers, as the Reserve Bank and the independent Grattan Institute have recently pointed out,” Mr Smith said.
The ATA budget submission highlights the importance of expanding support for business investment.
“COVID-19 is not a one-off economic hit - the impact will continue for years to come. The need to assist business and economic growth will continue beyond the end of 2020,” Mr Smith said.
“The Government’s July economic update, before the increase in COVID-19 cases and restrictions in Victoria, forecast non-mining business investment to fall by 19½ per cent.
“The Government should support businesses by extending the $150,000 instant asset write off to 30 June 2021 and introducing a long-term investment allowance to support investment in new assets, including trucks and trailers.
“The existing measures were decided prior to the second wave of COVID cases and restrictions in Victoria. Business investment needs more support to ensure a stronger economic recovery,” he said.
As well as increasing support for business investment, the ATA submission recommends increasing the base rate of the JobSeeker payment by at least $100 per week.
“The base rate of JobSeeker is well below the poverty line and is so low that people receiving the allowance can’t afford to search for jobs effectively. Increasing JobSeeker would also boost household spending and the economy,” Mr Smith said.
“With a $100 per week increase, JobSeeker would still be only around half of the full-time minimum wage, maintaining the incentive for unemployed people to move into full-time work,” he said.
The ATA and its member associations collectively represent the 50,000 businesses and 200,000 people in the Australian trucking industry. Together, the ATA and its members are committed to safety, professionalism and viability.