Scott Morrison says there has been a ‘rather significant event’ since the 2019 election – when the Coalition pledged not to alter the legislated rise in super.
Prime Minister Scott Morrison is considering abandoning his election promise to honour the scheduled rise in compulsory superannuation contributions to 12 per cent of wages, acknowledging that an increase would depress take-home pay and undermine the recovery from the COVID-19-induced recession.
Reserve Bank of Australia governor Philip Lowe said on Friday that lifting the super guarantee from the current 9.5 per cent would reduce wages, cut consumer spending and could ultimately cost jobs.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
