The Federal Government has made clear it has no plans to abandon raising the superannuation guarantee to 12 per cent by 2025 despite research from lobby group, the Grattan Institute, that the rise is not warranted.
Federal Treasurer, Josh Frydenberg has used multiple media interviews to reinforce that the Government has no plans to change its approach to the SG.
The Coalition Government acted to delay the Australian Labor Party’s planned program of increases to the superannuation after it came to office in 2013 meaning it would not reach the planned 12 per cent until 2025, seven years later than planned by the Labor Party.
Questioned on the Grattan Institute suggestions that an increase was not warranted, Frydenberg said the Government had no plans to change its approach, citing the certainty needed by retirees.
“I think people want the certainty when they are planning their investment, that’s legislated, and planning for their retirement,” he said.
The major changes to the proposed $3 million super tax legislation have been welcomed across the superannuation industry.
In holding the cash rate steady in September, the RBA has judged that policy remains restrictive even as housing and credit growth gather pace.
A new report warns super funds must rethink retirement readiness as older Australians use super savings to pay off housing debt.
An Australian superannuation delegation will visit the UK this month to explore investment opportunities and support local economic growth, job creation, and long-term investment.