Delay super guarantee increase until economy improves

The Australian Chamber of Commerce & Industry supports a deferral of any increase in the superannuation guarantee until the economy has recovered sufficiently from COVID-19.

ACCI notes the independent Retirement Income Review Final Report released today found that “the weight of evidence suggests the majority of SG increases are paid for through lower growth in wages”.

“This impact on Australia’s standard of living, on spending, and on business and consumer confidence give us great concern about continuing on with the timetable for the legislated super guarantee increases,” ACCI Chief Economist Dr Ross Lambie said.

“At this economically-fragile time, we need to be doing all we can to boost jobs and wages growth and get spending circulating back into the Australian economy.

“It is therefore a sensible move to defer any increase until the economy has recovered sufficiently from the pandemic.”

ACCI has previously supported the pause in the super guarantee increase at a time when there was an absence of strong economic conditions.

“Small and medium-sized businesses would be greatly impacted if an increase coincides with a weak economy,” Dr Lambie said.

The Independent Retirement Income Review released today provides the much-needed fact base for ensuring superannuation policy is fit for purpose.