Don’t ‘walk back’ the promised SG increase

Industry Super Australia (ISA) has fired a shot over the bows of conservative elements of the Morrison Federal Coalition Government which it claims are trying to “walk back” the time-table for increasing the superannuation guarantee (SG) to 12 per cent.

In doing so, the ISA has pointed to the possibility of a significant campaign in defence of lifting the SG, by claiming that the Government’s delays have already cost those approaching retirement nearly $100,000 and has demanded that such a policy option be ruled out.

ISA deputy chief executive, Matthew Linden said any attempt to wind back or free the legislated superannuation guarantee increase should be seen for what it is – an undermining of Australians’ quality of life at retirement.

“Australians would be right to ask why these Federal MPs think it’s ok to leave the super guarantee at just 9.5 per cent when they are beneficiaries of contributions of at least 15.4 percent under the parliamentary super scheme,” he said.”

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“Winding back the super guarantee would leave Australians worse off at retirement and increase the burden on the age pension. It’s bad policy and the Government should rule it out,” Linden said.

“The last thing working Australians need is a contrived case to delay the super guarantee increase, or to freeze it altogether. The Government made a promise and they should keep it.”

The ISA said the increase from 9.5 per cent to 12 per cent in the SG had been agreed to and even legislated – “and now a small minority of MPs want to shift the goal posts and deny Australians the increase they are entitled to”.

It said ISA analysis showed the damage delaying the super guarantee increase could have on a person’s super balance, with the average worker at the cusp of retirement already nearly $100,000 worse off as a result of continued delays to increases in super since its establishment 25 years ago.

“Further analysis shows that freezing the super guarantee at 9.5 per cent will see a 30-year-old earning $80,000 robbed of $90,000 in super by the time they reach retirement,” the ISA statement said.