Superannuation guarantee: Rise to 10 per cent in July under cloud

A big change is due to kick in come July and it could mean more money in your bank. Here’s how much you could collect under the reforms.

Pressure is mounting on the Morrison government to confirm a rise in the superannuation guarantee will get the green light come July.

A cloud has been hanging over the legislated boost of half a per cent, which will increase the amount of earnings put towards retirement savings to 10 per cent.

Economists have warned going ahead with the jump will come at the cost of future wage growth, as employers recover from the coronavirus pandemic.

But a backbench push to derail the rise appears to have failed following improvements to the economy, according to The Australian.

Labor MP Stephen Jones has been lobbying for the legislated rise to the superannuation guarantee to go ahead. Picture: NCA NewsWire / Gary Ramage

Labor superannuation spokesman Stephen Jones has demanded Scott Morrison come clean with Australian workers.

Mr Jones said the average 30-year-old worker was set to pocket an extra $80,000 to $100,000

under the changes over their working life.

“It is time for him to come out today and unequivocally confirm that he will commit to not cutting superannuation,” Mr Jones said.

“This is a big deal.”

Mr Jones also warned the Prime Minister that his credibility would be on the line if he delayed the legislated increase.

“If you can’t keep your promise on superannuation, how can Australians believe you on anything else you promise going into the next election,” Mr Jones said.

Treasurer Josh Frydenberg and Stephen Jones exchange words behind the speaker’s chair in the House of Representatives. Picture: NCA NewsWire / Gary Ramage

Over the next five years, contributions paid into workers’ superannuation funds are legislated to increase from 9.5 per cent to 12 per cent.

Treasurer Josh Frydenberg remained tight-lipped on whether the increase would go ahead as planned.

“You’ll have to tune in on budget night for the answer,” Mr Frydenberg said.

“When it comes to super, my focus has been and the government’s focus has been on lowering fees.

“We are also getting rid of duplicate accounts, which is a massive increase in the fee take, unnecessarily, on Australians with super.”

Wage gains were only a little more than 2 per cent when COVID-19 hit, according to Deloitte, which forecasts wages will only return to that relatively sluggish rate by mid-2024.

The federal budget will be handed down on May 11.