Treasurer Josh Frydenberg to review superannuation increase - NEWS.com.au

An increase in superannuation would hit lower-income earners hardest and cut lifetime wage earnings by 2 per cent, a long-awaited review has found.

The government is paving the way to scrap a legislated super rise after the retirement income review found current policy settings were “effective, sound and … broadly sustainable”.

The review warns the “weight of evidence suggests the majority of increases in the Super Guarantee come at the expense of growth in take-home wages”.

It instead emphasises “voluntary saving” and home ownership as key to long-term financial security.

Treasurer Josh Frydenberg says the report should “give Australians confidence about the soundness and the sustainability of Australia‘s retirement income”.

“(It) points out that the most effective way for people to secure themselves in retirement is not necessarily an increase in the superannuation guarantee, but by more efficiently using the savings that they do have,” he said.

“Government policies to boost homeownership … (are) helping to increase homeownership, which is clearly something the report points out is a positive for people in retirement.”

The Coalition had committed to boosting super from 9.5 per cent to 12.5 per cent by 2025. Labor also backed the move.

But Prime Minister Scott Morrison has since walked back the pledge, saying the economic impact of the COVID-19 pandemic means the policy must be reconsidered.

The rate is set to rise to 10 per cent in July, but Treasurer John Frydenberg confirmed that decision will be reviewed.

“We are living in a very different economic environment than we were this time last year. We have been subject, as a nation and a global economy, to a once in a century economic shock,” he said.

“It has had a major impact on employment, on wages, on the labour market more generally. So we need to make decisions based on the economic facts at the time.”

But Opposition Leader Anthony Albanese says “the government’s ongoing attack on superannuation will be resisted by Labor”.

“They look for any excuse to break the promises as they have done in each of the previous two terms of this coalition government,” he said.

“The fact is, we have a legislated increase for universal superannuation to 12%. The coalition committed to not change that. But once again, they’re laying the groundwork for a backflip.

“We have 600,000 Australians who have been left with superannuation balances of zero.

“That will have an impact on their quality of life in retirement, but it will also have an impact on the future budget position of future governments down the track.”

The government has also allowed Australians to dip into their super up to $20,000 due to the COVID-19 pandemic, a policy Mr Frydenberg says has been vindicated in the report.

“It points out that people’s early access to superannuation during the COVID crisis has been justified … and that this hasn’t had a significant impact on people’s retirement incomes,” he said.

The report made no formal recommendations and will only be used to “inform” government policy.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMilgFodHRwczovL3d3dy5uZXdzLmNvbS5hdS9maW5hbmNlL3N1cGVyYW5udWF0aW9uL3RyZWFzdXJlci1qb3NoLWZyeWRlbmJlcmctdG8tcmV2aWV3LXN1cGVyYW5udWF0aW9uLWluY3JlYXNlL25ld3Mtc3RvcnkvOWUyZDEwMTg0MzI1MjQwZmNlNTZkNzExOTIyODkxNWbSAZYBaHR0cHM6Ly9hbXAubmV3cy5jb20uYXUvZmluYW5jZS9zdXBlcmFubnVhdGlvbi90cmVhc3VyZXItam9zaC1mcnlkZW5iZXJnLXRvLXJldmlldy1zdXBlcmFubnVhdGlvbi1pbmNyZWFzZS9uZXdzLXN0b3J5LzllMmQxMDE4NDMyNTI0MGZjZTU2ZDcxMTkyMjg5MTVm?oc=5

2020-11-19 21:40:55Z
52781197471989

Bagikan Berita Ini