Minister responsible for superannuation “ambivalent” about SG rate increases

The Minister responsible for superannuation is “ambivalent” about increases to the SG rate, while the PM has suggested such increases may need to be reconsidered due to COVID-19, and the Retirement Income Review is sitting on the Treasurer’s desk. The debate over when, or if, to increase the Superannuation Guarantee rate has reignited. Currently the… Continue reading Minister responsible for superannuation “ambivalent” about SG rate increases

38% of recent retirees struggling financially, survey finds

Research released by Industry Super Australia has found that almost 40% of recent retirees struggle financially, which the group is using to support calls for a higher Super Guarantee rate. 38% of the survey respondents who had recently retired said they were either living on a very tight budget – with only enough for essentials… Continue reading 38% of recent retirees struggling financially, survey finds

Super Guarantee under attack from “unholy coalition”: Albanese

The currently legislated increase to the Super Guarantee rate is under attack from an “unholy coalition”, says Labor Leader Anthony Albanese. Albanese used his latest ‘vision statement’ speech to criticised groups opposed to increases in the Super Guarantee rate. “At the moment we are witnessing an unholy coalition attacking the increase in the Superannuation Guarantee.… Continue reading Super Guarantee under attack from “unholy coalition”: Albanese

RBA forecasts have 80% of Super Guarantee increases coming out of wages growth

The RBA, when preparing its forecasts, is working on the basis that 80% of the cost of increased Super Guarantee for private sector workers is passed on as slower wages growth. Appearing before a House of Representatives Committee, Dr Luci Ellis, Assistant Governor (Economic) with the RBA, said the forecasts “assumed a partial passthrough” of… Continue reading RBA forecasts have 80% of Super Guarantee increases coming out of wages growth

Industry Super launches campaign in support of 12% SG rate

Industry Super Australia has launched a new advertising campaign, in support of increasing the Super Guarantee rate to 12% – a subject of intense current debate. Industry Super Australia (ISA) says the aim of the campaign – which will run through to June across TV, radio, online and other platforms – is to “lift awareness”… Continue reading Industry Super launches campaign in support of 12% SG rate

Frozen Super Guarantee rate has cost median worker $4,333 so far

Having the the Superannuation Guarantee rate frozen at 9.5% has cost the median worker more than $4,000 over the past five years, and the losses are likely to continue, analysis by Per Capita has found. The Superannuation Guarantee rate has been frozen at 9.5% for several years, though it’s legislated to gradually increase and reach… Continue reading Frozen Super Guarantee rate has cost median worker $4,333 so far

80% of cost of Super Guarantee rate increases passed on as lower wages

New economic modelling by the Grattan Institute finds that around 80% of the cost of increasing the Super Guarantee rate is passed on to workers as lower wages. Part of the ongoing debate about increases to the Super Guarantee rate has been about how much, if any, of the cost is paid by workers. The… Continue reading 80% of cost of Super Guarantee rate increases passed on as lower wages

Research questioning raising SG rate based on “fantasy world”: ISA

Industry Super Australia has disputed the findings of ANU research on the appropriate level of the Super Guarantee rate, describing it as based on a “fantasy world with dangerous conclusions”. There is currently a debate raging about how high the Super Guarantee rate should be set. The Government has started a Review of Retirement Incomes,… Continue reading Research questioning raising SG rate based on “fantasy world”: ISA

Treasurer returns to ‘no plans’ to change SG rate timetable language

Treasurer Josh Frydenberg has returned to the language of ‘no plans’ to change increases in the Super Guarantee rate, only days after the Review of Retirement Incomes started. The Treasurer was asked on ABC’s Insiders if the Government was committed to increasing the SG rate to 12% by 2025. Frydenberg answered: “Well it’s legislated and… Continue reading Treasurer returns to ‘no plans’ to change SG rate timetable language

Stopping SG rate increases not a fix for low wages growth

Stopping increases in the Super Guarantee rate is not the solution to low wages growth, and much of the arguments against increases are based on assertions, new economic research has found. Dr Jim Stanford, Director and economist with the Centre for Future Work at the Australia Institute, says that record-low wages growth can’t be fixed… Continue reading Stopping SG rate increases not a fix for low wages growth