CANBERRA, AAP – Former prime minister Malcolm Turnbull has joined the campaign to increase the superannuation rate.
The federal government is considering abandoning its legislated promise to raise the super guarantee, arguing it could come at the cost of jobs and wage rises.
But Industry Super Australia has commissioned a study that found lifting the guarantee to 12 per cent would grow the economy by $12 billion, grow wages and create more than 10,000 jobs.
Mr Turnbull has added his voice to the campaign, in a move likely to infuriate some members of the Morrison government.
“Australia’s superannuation system is the envy of the world,” he said on Friday.
“The legislated increase to 12 per cent should be maintained, not just to deliver a more secure retirement for millions of Australians, but to build stronger economic growth and higher wages.”
ISA chairman Greg Combet said the report dispelled the myth that once money went into super it simply “disappeared into thin air”.
“We know that’s not the case and the pool of patient capital has a positive and lasting impact on employment, wages and economic growth,” he said.
“The consequences of cutting super are crystal clear – it leads to permanently slashed wages, jobs lost, and the economy crimped all while adding to the aged pension and leaving Australians far worse off in retirement.’