According to Industry Super Australia (ISA), the Grattan Institute’s claims that workers overwhelmingly bear the burden of increases in compulsory superannuation through lower wage growth are unfounded, with members being worse off if the guarantee is not raised.

According to ISA chief executive Bernie Dean, “The Grattan Institute overestimates contributions, overestimates payouts, makes half the population live too long, and fails to reflect the distribution of retirement savings and the persistence of low balances.”

ISA said independent research by economist Jim Stanford showed no evidence of a one-to-one trade-off between super contributions and wage growth. 

Mr Stanford found that there is no visible correlation between increasing in the superannuation guarantee rate and low wages, and no evidence to suggest that freezing the SG rate will increase wages by the same amount.

“This report is nothing new. Grattan came to this flawed conclusion last year and have now come back with cherry-picked information to support a preconceived fantasy view of the world that models part-time workers, the self-employed and women out of existence,” Mr Dean said.

ISA analysis showed that more than 8 million Australians could be worse off in retirement if the super rate is cut, losing more than $14.1 billion in super a year, or around $1,630 a year for the average person.

For an average 30-year-old couple working full-time, detailed modelling showed cutting the SG increase would deprive them of up to $200,000 in super by the time they retire.

“The only way to give Australians dignity, choice and control in their retirement is by the government raising compulsory superannuation,” Mr Dean said.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Superannuation

Payday super reform hailed as transformative win for Australian workers

In a significant shift for Australia's retirement savings landscape, the introduction of the Payday Super regime on Wednesday, 1 July, marks a transformative change in how superannuation payments are ...Read more

Superannuation

Many Australians to miss out on EOFY super boost due to affordability and knowledge gaps

As the end of the financial year looms, a significant number of working Australians are poised to miss out on the chance to enhance their superannuation savings. A recent survey commissioned by global ...Read more

Superannuation

Aware Super restructures leadership as Ian Pendleton steps down

In a significant leadership reshuffle, Aware Super is bidding farewell to its long-serving Group Executive Legal and Company Secretary, Ian Pendleton, as he steps down from his executive role after 14 ...Read more

Superannuation

Half of Australians unaware of impending superannuation law change set to impact millions

In a surprising revelation, a recent study has highlighted a significant knowledge gap among Australian workers regarding a major superannuation reform set to affect over 1.2 million people from 1 ...Read more

Superannuation

Rest strengthens investment strategy with seasoned executive appointment

In a strategic move to bolster its investment strategy, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Andy Moser as the Head of CIO Office. This newly created ...Read more

Superannuation

NGS Super strengthens leadership with appointment of new Chief Member Officer

In a strategic move to bolster its member growth and experience transformation, NGS Super has appointed Adam Parsons as the new Chief Member Officer (CMO). Effective from 1 June 2026, Parsons will ...Read more

Superannuation

Aware Super triumphs at Chant West Super Fund Awards with top honours

In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more

Superannuation

NGS Super rolls out enhanced member advice services with a focus on accessibility

In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more