Labor has taken the prime minister to task over a deal with Palmer United Party to delay a lift in compulsory superannuation.
A deal to delay a lift in compulsory superannuation will not short-change workers, Prime Minister Tony Abbott says.
The coalition government on Tuesday reached an agreement with the Palmer United Party to pass the repeal of the mining tax through the Senate.
The tax was supposed to fund the cost to government of increasing the superannuation guarantee rate to 12 per cent by 2019/20 through annual increases of 0.25 per cent.
So far the compulsory contribution has risen from nine per cent to 9.5 per cent.
Under the deal with PUP, that rate will be frozen until 2021 when it increases to 10 per cent.
After that it will increase by 0.5 per cent annually until it reaches 12 per cent.
For the average worker, the change will mean lost contributions of about $3500 over seven years.
Labor leader Bill Shorten asked Mr Abbott in parliament whether the deal breached the coalition’s election promise not to make any adverse changes to superannuation during the term.
Mr Abbott accused Mr Shorten of “confected indignation”.
“There are no adverse changes as a result of this,” Mr Abbott said.
“By delaying the increase in the superannuation guarantee levy we are keeping more money in workers’ pockets.”