The Grattan Institute has released startling analysis of both sides’ policy to increase compulsory super contributions to 12%, which it estimates will cost workers up to $20 billion a year in foregone wages once fully implemented in 2025-26, or close to 1% of GDP. Grattan also shows that the extra super contributions won’t help most low- and middle-income workers much in retirement, with the benefits from raising the Super Guarantee instead accruing primarily to high–income earners via extra tax breaks:
Stagnant wages are a big issue in the federal election campaign. So it’s strange that both major parties remain committed to changes that will take more out of workers’ pockets.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
