Treasurer signals COVID-19 could ruin planned super increase

Treasurer Josh Frydenberg has indicated a rise in the superannuation guarantee might not be delivered as planned next year – citing economic ruin caused by COVID-19.

The super guarantee is legislated to rise slowly from 9.5 per cent beginning next year and reach 12 per cent in 2025.

When asked about the super increase by Opposition Leader Anthony Albanese, Mr Frydenberg said the “reality” was Australia had been “hit hard” by COVID-19.

“We’re working through these issues and taking into account the comments and the insights provided by a number of people,” Mr Frydenberg said.

He said RBA Governor Philip Lowe warned the increase could be "offset by lower wage growth over time", would “certainly” have a negative wages growth effect and reduce spending.

He also said the Grattan Institute told him “increasing compulsory super contributions in the midst of a deep recession would slow the pace of recovery”.

Image: News Corp Australia

Видео Treasurer signals COVID-19 could ruin planned super increase канала Sky News Australia