Labor is right to rule out further increases in compulsory superannuation
In late 2020, the former Coalition government received the findings of the review into Australian retirement incomes, which explicitly recommended against lifting the compulsory superannuation rate to 12% because it could disadvantage low-income earners and reduce workers’ lifetime incomes: “A rate of compulsory superannuation that would result in people having an increase in their living The…
In late 2020, a review into Australian retirement incomes explicitly stated that raising the compulsory superannuation rate to 12% could be detrimental to low-income earners and lower workers' lifetime incomes. The report's conclusion was clear: "A rate of compulsory superannuation that would result in people having an increase in their living standards in retirement may involve an unacceptable reduction in living standards prior to retirement, particularly for lower-income earners."
The report's authors based their findings on a consensus of evidence, which suggested that super guarantee rate increases often result in stagnant wage growth, ultimately affecting the living standards of workers during their working years.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
