Compulsory super has been one of the big success stories of Australian public policy in recent decades. Once only available to private sector executives and public sector employees, the Superannuation Guarantee (SG) has enabled almost all working Australians to accrue private savings for a better retirement.
The SG is critical to how we respond to the challenges presented by our ageing population and improves retirement incomes of working people in a fiscally sustainable manner. Although still maturing, annual superannuation retirement benefit payments are already double Commonwealth expenditures on the Age Pension.
The SG rate is currently 9.5 per cent and is scheduled to increase in stages to 12 per cent by 2025. The first increase us due to take place in July 2021. However, the current federal government has cast doubt over whether the increases will proceed as scheduled, suggesting that it may abandon them.
This report shows the compelling body of evidence that it is in the best financial interests of all current and future workers in Australia, and the broader Australian economy, that the scheduled Superannuation Guarantee increases to 12 per cent, as planned.