Workers Should Take Back Control of Their Pension Funds
Australia’s pension funds control nearly $3 trillion of workers’ capital, but they’re currently dominated by corporate interests. The labor movement should take back control over them from bankers and use the funds to build a better future.
A man looks at an electronic board displaying stock information at the Australian Securities Exchange, operated by ASX Ltd. on March 16, 2020 in Sydney, Australia. (Brendon Thorne / Getty)
Australia’s “superannuation wars” are still raging. The current debate is about whether increasing employer superannuation payments will or won’t affect wage growth. But this misses the most important point.
Although they are misleadingly referred to as “employer contributions,” superannuation payments are neither a gift nor a tax on wages. For workers in formal employment, superannuation payments are part of our wage, paid into collective funds, to be managed in our collective interest.
Scott Morrison’s Liberal government accepts this principle when it finds it convenient. As soon as the pandemic hit, it allowed workers to withdraw up to $20,000 from their superannuation accounts. Given that the alternative would have been to fund a social safety net, you can see why the Liberals chose the first option, which shifted the financial burden onto workers.
This article is for subscribers only. Please login or subscribe to access our full archives and beautiful print and digital magazine starting at just $3 a month.