Australian Treasury: Super increase will lower wages
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Yesterday, Treasury Secretary Steven Kennedy told a Senate inquiry that the legislated increases in the compulsory superannuation guarantee (SG) from 9.5% to 12% will push down real wage growth.
Kennedy stated that real wage growth would be 0.4% higher per legislated 0.5% increase in the SG, which begins in July and ends in mid-2026:
“Roughly speaking a 0.5 [percentage point] increase in the super guarantee means wages are less by about 0.4 [percentage points]”…
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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.