Major parties wrangling over superannuation

(Australian Associated Press)


The federal government insists it has been vindicated over its past decision to delay increasing the superannuation guarantee as Labor toys with fast-tracking the trajectory.

In 2012 the Gillard Labor government moved to increase the superannuation guarantee from nine per cent incrementally to 12 per cent by 2019.

The Abbott government froze the guarantee at 9.5 per cent in the 2014 budget and aimed to get to 12 per cent by 2025.

Assistant Treasurer Michael Sukkar doesn’t think increasing the superannuation guarantee early would necessarily be a popular move because of tight household budgets and flat wages growth.

“We’ve been vindicated that it was absolutely the right decision – for every dollar you increase in superannuation guarantee that’s a dollar less you’ve got today,” he told Sky News.

Asked if the government was seeking to delay the increase to 12 per cent again, Mr Sukkar responded: “with a very strong economy we’re moving into an environment that maybe we can manage it.”

The May federal budget is expected to reaffirm the government’s intention to lift the super guarantee from 9.5 per cent to 10 per cent in 2021.

Meanwhile, Labor is considering applying the superannuation guarantee to the government-funded parental leave scheme to help address an imbalance in women’s retirement savings.

Mr Sukkar questioned how the opposition would fund it.


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