Scope to increase SG without fuelling wage growth
The Government could safely allow an increase from the current superannuation guarantee (SG) 9.5 per cent to 12 per cent without creating wages growth, according to AustralianSuper independent director and former adviser to former Labor Treasurer and Prime Minister, Paul Keating, Dr Don Russell.
Addressing Super Review’s Future of Super Conference in Melbourne, Russell said that the manner in which productivity growth had outstripped wages growth meant there was capacity to lift the SG without adding to wages pressure.
He said that the simple fact of the matter was that the superannuation guarantee needed to be looked at differently during a period of wage stagnation and produced a graphic to indicate that while productivity had increased over the past 10 years, the SG had not of itself been a factor.
Russell said that much of the growth had been driven by the terms of trade which had added about 21 per cent to gross domestic product which equated to the addition of about two per cent to the capacity to pay increased wages.
He said on this basis, there was a capacity to proceed with the time-table for increasing the SG without fuelling wages growth.
Recommended for you
Cbus CEO Kristian Fok has criticised lead generators promoting superannuation switches, with the Shield and First Guardian problems being the “tip of the iceberg” for super members.
A global report from Mercer shows that pension systems with no or limited restrictions tend to perform better, while sharing recommendations on how Australia can improve its ranking.
Australian super funds have extended their winning streak into September, as strong global equities and resilient long-term returns boost member outcomes.
The super fund has appointed long-serving technology leader Richard Exton to its executive team, underscoring the fund’s digital transformation priorities.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
