PBO: Lifting super guarantee will lower wages

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By Leith van Onselen

After Labor last week doubled down on lifting Australia’s superannuation guarantee (compulsory superannuation) to 12%, the Parliamentary Budget Office (PBO) today has explicitly warned that such a move will necessarily lower wages:

“The increase in the superannuation guarantee to 12 per cent will likely lead to lower wage increases, shifting a greater proportion of earnings into the superannuation system”.

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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.