15 September 2004
Innovative Proposals on Workplace Super
“The ‘Harris’ Report on Workplace Savings has made some innovative recommendations to address low levels of savings and high levels of debt”, said Peter Conway, CTU Economist today.
The recommendations on modernising the regulatory requirements, establishing a central registry and collection system, using the tax system to calculate standard payments, and apply an opt out rather than opt in arrangement all add up to a significant reform package.
Peter Conway said that there will need to be some incentives to make sure that schemes under this set of proposals will be successful.
In addition, we need to see wages rise and a greater willingness from employers to make contributions before workplace savings will really lift off.
Peter Conway said that the CTU is encouraging employers to take a positive approach to this report as the Group has gone to considerable lengths to take employer concerns on board.
Peter Conway said that “we will now carefully analyse these recommendations and address in particular such issues as the length of time before a worker can opt out, the application of the proposals to firms with fewer than 5 workers, and the incentive options”.