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ATA pushes to stop the superannuation guarantee increase

ATA pushes to stop superannuation guarantee increase - ATA Chair David Smith

The Australian Trucking Association (ATA) is calling on the Australian Government not to proceed with the increase in the superannuation guarantee planned for 1 July 2021.

“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,” Chair of the ATA David Smith said when he released the ATA’s 2020-21 budget submission earlier today.

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,” Smith says.

“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.

He highlights that existing measures were decided prior to the second wave of COVID cases and tightened restrictions in Victoria, adding that business investment needs more support to ensure a stronger economic recovery.

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,” Smith adds.

“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.”

To read the submission, please click here.

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