“No plans” to change increases to Super Guarantee rate: Treasurer

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Treasurer Josh Frydenberg has repeated that the Government has “no plans” to change the legislated increases to the Super Guarantee rate.

Asked on ABC’s Insiders if the Government was committed to increasing the Super Guarantee rate to 12% by 2025, the Treasurer said: “We have no plans to change that legislated increase.”

The Super Guarantee rate was set to have already reached 12%, but it was delayed under the Coalition. It is not scheduled to reach 12% until July 2025.

During the interview Frydenberg said four times that there were “no plans” to change legislated increases to the Super Guarantee rate.

Asked by Annabel Crabb if some plans to change the SG rate could be developed, Frydenberg retorted that “you’re very cynical”.

Frydenberg pointed to analysis by the Grattan Institute, which has been strongly criticised by the superannuation industry.

“We have no plans to change the legislated increase. It goes to 12%. But what we saw from the Grattan Institute this week was an interesting report on this very point, because what we need to fully understand with this increase is what is happening to retirement incomes, what is happening to the nation’s balance sheet. What’s happening to the nation’s savings. That’s why the Productivity Commission recommended that there be retirement incomes review, and that’s something that the Government is supportive of.”

A review of the retirement income systems, prior to any increase in the Super Guarantee rate, was a recommendation of the Productivity Commission report into superannuation. The Government has had the report since December last year, but has yet to fully respond to the recommendations.

Following the interview, Labor Shadow Treasurer Jim Chalmers said, on Twitter, that the Government was “clearly gearing up for another attack on workers’ retirement savings, caving in to backbench pressure”.

Last week Chalmers called on the Prime Minister to rule out further delays to Super Guarantee rate increases, after a report that Coalition backbenchers were planning to use a review of retirement incomes to stop further increases in the SG rate.

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