The pledge comes as the government faces an imminent federal election on 21 May, with Prime Minister Scott Morrison reaffirming the Coalition’s position in supporting a rise in the superannuation guarantee if re-elected.
One of the superannuation sector’s biggest peak bodies, Industry Super Australia was elated by the Prime Minister’s announcement, commenting that it establishes a “strong bipartisan pact” that will “deliver dignity in retirement for millions”.
As the rate increase is enshrined in legislation, the government will be obliged to facilitate rises of “affordable” 0.5 per cent increments each year until it reaches 12 per cent by 2025.
Industry Super Australia feels the announcement reinforces a Coalition commitment made in December 2021, to increase the rate without delay and without making parts of the increase optional.
The Labor Party has also backed the superannuation guarantee rise, with an affirmed commitment from Shadow Assistant Treasurer and Shadow Minister for Financial Services, Stephen Jones.
According to Industry Super Australia, Australians “strongly support” the increases, with a recent consumer survey showing two-thirds of Australians “want politicians to stop tinkering with the super rate”.
“A 30-year-old could stand to lose $78,000 at retirement if the legislated increase was scrapped,” a statement from Industry Super Australia said.
Industry Super Australia also called on the next government to commit to closing the gender super gap and to fix unpaid super by making super payable on payday, “to ensure workers get the full benefit of the superannuation guarantee increase”.
Industry Super Australia chief executive Bernie Dean welcomed the Prime Minister’s “ironclad commitment” that a re-elected Coalition government would not alter the legislated increases in the Super Guarantee in any way.
“The commitment from both major parties to leave the super rate alone is a no-brainer given how much the community supports it going up,” Mr Dean said.
“Our federal politicians now need to make sure every worker gets the full benefit of the locked-in rise in the super guarantee by requiring all employers to pay it with wages. Only that will fix the scandal of unpaid super that costs about one in every four workers billions of dollars each year.”
