On reaching his 70th birthday last September, Queensland security worker Mr John Tsonis didn’t get a gold watch from his employer MSS Security, instead they chopped the 9 per cent employer superannuation he was receiving to zero.
MSS, one of Australia’s largest security companies, was able to do so because of a loophole in federal legislation which discriminates against workers over 69-years-old. The legislation is set to change in July next year, but that’s cold-comfort for Mr Tsonis and others in the same situation. When approached by Neos Kosmos MSS Security declined to comment on Mr Tsonis’ situation.
Last week, John Tsoniss, who will lose over $3500 in super contributions, wrote to Neos Kosmos to share his concerns. “They told me the government has made legislation which said they didn’t have to pay anymore super for me. God help us,” wrote Mr Tsonis.
“That means the laws which existed 3000 years ago at Sparta. The governor Licourgos had a law [that] any person reach the age of 60 he was chopping his head off. “I like to remind the Australian government that I have worked since August 1964, six or seven days a week and without getting a single penny or cent from the dole.” Mr Tsonis says that a change in the law next year is of little comfort.
“What about in the meantime? I’ve been discriminated between my last birthday 21st of September until next July, that’s a year and a half. Why should I lose money over this time?
“It’s not good enough, they should backdate it.”
Trish Power, author of ‘Superannuation for dummies’ and co-founder of the free independent website superguide.com.au told Neos Kosmos that the legislation affecting Mr Tsonis and other workers of his age remains inconsistent. “It’s been a silly rule that should have been looked at many years ago. It was originally negotiated way back in the 1980s. To get it through parliament it was given an age limit, and they didn’t think that much ahead that people would be working beyond 65.” Ms Power added that some employers have undertaken to renegotiate packages for employees reaching 70, to ensure they weren’t out of pocket, but that it was down to each employer.
“Not all did, and if the worker is in a job where they’re paid an hourly rate, that might not be available.
“The government changed the legislation so that from July 2013, anyone up to 74 would receive employer superannuation, but just recently they’ve thrown that out and said it will be for anyone working, whatever age. That’s as long as the worker satisfies other requirements – basically that you have to earn at least $450 per month.”
Ms Power said that Financial Services Minister Bill Shorten has recently identified yet another discriminatory issue which the government is reviewing, in relation to income protection insurance, which is not currently available for workers over 65 years of age. It is understood that at least 30,000 people over the age of 69 are being affected by cuts to their superannuation as a result of their employers canceling payments.
The numbers will continue to grow until the legislation comes online in July 2013. John Tsonis’ message to other elderly workers is unequivocal – unite and make a stand: “Wake up old people, raise your voice, the ones who still want to work.” For free and independent advice on superannuation issues go to www.superguide.com.au
