Super switch cost counted
Analysts say lifting mandatory super to 12 per cent will strip $20 billion a year out of wages.
A new report by the Grattan Institute has counted the cost of both major parties’ plans to lift the compulsory superannuation contribution from 9.5 per cent to 12 per cent by 2026.
“Both sides of politics are committed to wage cuts that workers' can't afford, in exchange for extra super that won't help them much,” report author Brendan Coates warned.
“The overwhelming evidence is that higher super contributions are paid for by lower wages for workers.
“The Henry Tax Review and others have shown that this is exactly what happens. The Parliamentary Budget Office came to the same conclusion just weeks ago.”
Mr Coates said super funds want the major parties to lift the contribution threshold.
“More super at retirement is only useful if it actually translates to higher incomes in retirement,” he said.
“For most low and middle-income earners, it won't help much.”