Why the superannuation guarantee shouldn’t be raised

Monday 24 July 2017

The Australian’s Judith Sloan has published an article today arguing against raising the superannuation guarantee – the amount that employees must compulsorily contribute to super – to 12%, which has been recommended by a report written by Per Capita and commissioned by the Australian Services Union.

According to Sloan, compulsory superannuation is a bad idea for low-wage earners, many of whom are women, as it reduces their income even further, making it even harder for them to pay for things like houses and school fees. Indeed, there is a case to be made to scrap compulsory superannuation altogether:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.