A Liberal Senator has said the large amounts of money withdrawn under the early super release scheme were positive for Australian households, as the government considers making further rises in the S
Superannuation cannot rise without stalling wage growth, RBA documents reveal
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Superannuation will rise to 10 per cent on July 1.
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Australia s superannuation rate is legislated to rise but it could cost workers an increase in wages.
Key points:
Superannuation is legislated to increase to 10 per cent on July 1
FOI documents from inside the Reserve Bank of Australia show it believes a rise in superannuation will cost wages
The view is based on the work of one think tank, the Grattan Institute
Confidential documents show the central bank s position on this contentious economic question is clear; the Reserve Bank of Australia (RBA) believes up to $8 of every $10 of future wage rises could be wiped out as the superannuation rate lifts half a per cent each year before reaching 12 per cent by 2025.
A proposal which would give workers the choice between a wage rise or an increase in the rate of superannuation guarantee they receive has been criticised by superannuation industry bodies.
Industry bodies have lashed a controversial initiative that would see workers pocket some or all of the legislated superannuation increase as take-home pay.
Forcing workers to use their retirement savings to fund their own pay rise should not be a way to deal with low wage growth, the Australian Institute of Superannuation Trustees believes.