Labor super policy flawed: industry group

Businesses will face higher costs and more red tape without any significant benefit to women if a Labor government went ahead with changes to superannuation, a peak industry group says.

Federal Labor has proposed to remove the $450-a-month income threshold below which employers are not required to make super contributions.

Labor leader Bill Shorten says this will give women a fairer go when it comes to superannuation.

But Innes Willox from the Australian Industry Group said new analysis showed the policy would add much more to employer costs than it would add to the retirement incomes of women.

"Improving retirement incomes for women is of course an important goal," Mr Willox said.

"However, the removal of this long-standing threshold will add significantly to the direct costs of employment and to business compliance costs."

As well, the extra superannuation guarantee payments will give rise to higher payroll tax liabilities, he said.

About a third of the funds would be paid into the superannuation accounts of men, the analysis found.

And of the remaining additional contributions, 15 per cent would be paid in federal tax and another proportion would be deducted as fees by superannuation funds.

Mr Willox said he would welcome further consultation over the policy.

His comments come as Minister for Women Kelly O'Dwyer has renewed calls for Labor to back reforms aimed at improving the security of people's superannuation before suggesting other changes.

The reforms, currently before the senate are aimed at preventing rorts and rip-offs in the sector.

"Before you can consider further changes to superannuation, you've got to fix the current structural changes that exist right now," Ms O'Dwyer told ABC Radio on Monday.

"They (Labor) have refused to give confirmation that they would support these measures in the senate and I think the real question is why."

Australian Associated Press