Labor’s plans to increase the superannuation guarantee to 12% is under pressure, following Treasury modelling showing the money being spent on the Age Pension pension is falling faster than had been predicted. The Age Pension cost 2.9% of GDP in 2002, and had been tipped to rise to 4.6% by 2042. However, that forecast has been lowered. From The Australian:
The Grattan Institute has found increasing the rate would overwhelmingly benefit wealthier savers, hurt poorer workers by forcing them to put aside more of their disposable income for meagre increases in savings, and cost the federal budget an extra $2bn a year in tax concessions…
