Productivity Commission: Superannuation increase will stifle recovery

Sunday 13 September 2020

Last month, Reserve Bank governor Philip Lowe told a parliamentary committee that increasing the superannuation guarantee (SG) to 12% could reduce wages, curtail consumption, and drive up unemployment:

‘‘The evidence is that increases of this form do get offset by lower wage growth over time…

‘‘If this increase goes ahead, I would expect wage growth to be even lower than it otherwise would be.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.