ITECA Releases Its Student-Centric Blueprint For The Next Australian Parliament

The Independent Tertiary Education Council Australia (ITECA) has unveiled a policy reform agenda aimed at putting students at the forefront of skills training and higher education in the lead-up to the next federal election. The blueprint, described as student-centric, challenges the current institution-focused policies, which ITECA argues are failing students, businesses, taxpayers, and the nation.

Key Points:

• Call for Reform: ITECA criticises the current government’s preference for public institutions like TAFE colleges and universities, which they believe creates significant barriers to accessing quality tertiary education. They argue that this approach disproportionately affects students who choose independent Registered Training Organisations (RTOs) or higher education institutions, leaving them without sufficient government support.
• Student-Centric Focus: The manifesto emphasises the need for reforms that prioritise students’ needs and choices, advocating for a system that allows students to select the provider—whether independent or public—that best aligns with their personal and professional goals.
• Equity and Access: ITECA’s blueprint calls for eliminating discrimination against students who choose independent RTOs or higher education providers. The organisation believes that government policies should ensure a fair and equitable playing field for all tertiary education providers, supporting students’ informed decisions.
• Advocacy and Vision: ITECA’s approach is driven by its members, who are committed to advocating for a tertiary education system that better supports students and creates a more balanced and fair educational landscape.

ITECA’s election manifesto is part of their broader vision for a student-focused tertiary education system in Australia.

For more details on the manifesto and ITECA’s policy recommendations, you can visit their website here.

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Fixing Unpaid Super: A Fairer System for Workers and Employers

Super Members Council

The ongoing issue of unpaid superannuation in Australia remains a significant concern, with a staggering $5 billion lost annually, depriving millions of Australians of the full benefits of the country’s world-leading superannuation system. The Super Members Council (SMC), representing the interests of 11 million Australians with retirement savings in profit-to-member super funds, is calling for urgent legislative reform to address this persistent problem.

The Unpaid Super Crisis

A new report from the SMC highlights the scale of the unpaid super crisis, revealing that in the 2021-22 financial year alone, 2.8 million Australians were shortchanged by $5.1 billion in legal super entitlements. Over the past nine years, the total amount of unpaid super has reached $41.6 billion, with the average affected worker losing $1,800 annually. This shortfall could translate into more than $30,000 less in retirement savings for a typical worker.

The problem is particularly severe among women, people in insecure work, migrant workers, and younger employees. Workers in their 20s earning less than $25,000 a year face a one-in-two chance of being underpaid their super.

The Need for Reform

A major contributor to the unpaid super issue is the outdated system that allows superannuation payments to be made quarterly, rather than aligning with wage payments. This gap makes it difficult for workers to track underpayments and hinders the Australian Tax Office (ATO) from using real-time monitoring tools effectively.

While the Australian Government has pledged to implement payday super reforms by 2026, the necessary legislation has yet to be introduced to Parliament, and the specifics of its implementation remain unclear. SMC CEO Misha Schubert has emphasised the urgency of enacting these reforms within the current term of Parliament, allowing businesses to plan and ensuring that millions of Australians receive their superannuation in full and on time.

“Paying super on payday will modernise the super system and should significantly reduce underpayments,” said Ms. Schubert. “It’s an excellent example of reform that benefits super fund members and makes the system fairer for both workers and employers.”

Enhancing Compliance and Support

The SMC is also pressing the government to set clear compliance and recovery targets for the ATO, a commitment made in 2022 but not yet realised. Although the ATO’s efforts to address unpaid super have increased, they currently recover only about 15% of the nation’s unpaid super each year.

Moreover, unpaid super often comes to light only when businesses go bankrupt. To address this, the SMC advocates for extending the Fair Entitlement Guarantee—a compensation scheme of last resort for workers—to include unpaid superannuation.

A Unified Effort

Ms. Schubert stressed the importance of a unified approach to solving the unpaid super problem, combining legislative action, stronger ATO enforcement, and enhanced support for workers to claim their super after insolvencies. “We stand ready to work with the Government, Parliament, and other key stakeholders to enact these pivotal reforms and ensure Australia fixes the stubbornly persistent unpaid super problem,” she said.

The SMC’s call for reform is a critical step toward ensuring that Australia’s superannuation system works fairly for all workers and that businesses are held accountable for their obligations. By addressing unpaid super, the country can better secure the financial futures of millions of Australians and create a more equitable system for everyone involved.

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Addressing the Economic Reality: The Hidden Truth Behind Australia’s Job Market and Financial Strategies

By Robert Heyward

Australia’s economy is navigating a complex and challenging landscape, with a disturbing trend emerging: substantial job growth is predominantly occurring within the government sector, while the broader private sector appears stagnant, if not teetering on the brink of recession. This imbalance in employment growth is a significant concern, as a thriving economy depends on robust job creation within the private sector, which fuels innovation and generates the tax revenue necessary to sustain public services.

Government Job Growth and Economic Stagnation

The over-reliance on the government sector for job creation is masking deeper economic issues. The surge in migration, which temporarily bolsters the economy by increasing market demand, is a short-term fix that obscures the underlying weaknesses. Without this influx of migrants, Australia could face a prolonged recession, as the private sector struggles to generate new employment opportunities. This situation underscores the need for a balanced approach to job creation, where both public and private sectors contribute to economic growth.

Interest Rate Increases: A Controversial Strategy

The recent pattern of interest rate hikes has further strained the economy, with some critics arguing that these increases are more about wealth transfer than combating inflation. Interestingly, it was the Commonwealth Bank of Australia (CBA) that first signalled an interest rate hike, with the Reserve Bank of Australia (RBA) subsequently following suit. This move allowed other banks to capitalize on the situation, leading to a concentration of wealth within the banking sector at the expense of consumers.

Adding to the controversy, the CBA has recently reduced the interest paid on fixed deposits, a move that suggests the bank anticipates future rate decreases. This decision benefits the banks and raises concerns about the sustainability of current economic strategies.

A New Approach to Inflation Control

In response to these challenges, a novel proposal has emerged from a concerned Property Club member: introducing a 1% “inflation levy” by increasing the universal superannuation contribution. This approach would curb consumer spending while simultaneously boosting individuals’ retirement savings, offering a more equitable alternative to traditional interest rate hikes. Once inflation is under control, the levy could be reversed, allowing Australians to retain more of their income.

Property Market Resilience

Despite the economic uncertainty, the property market continues to demonstrate resilience. As interest rates naturally decline, property prices are expected to rise, making now an opportune time for Australians to invest in real estate. Contrary to media narratives that claim it will take decades to save for a deposit, savvy investors are finding ways to navigate the market and build wealth through property investment.

Conclusion

Australia’s current economic trajectory presents both challenges and opportunities. While the government sector’s job growth offers a temporary cushion, it is essential to address the private sector’s stagnation to ensure long-term economic health. The controversial interest rate strategies adopted by banks highlight the need for innovative solutions, such as the proposed inflation levy on superannuation, to combat inflation and promote financial stability. Meanwhile, the property market remains a promising avenue for investment, offering Australians a path to secure their financial futures amid economic uncertainty.

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