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Retirement

Keating slams MPs not in support of super guarantee raise

By Cameron Micallef · August 08 2019
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Former Prime Minister Paul Keating

Keating slams MPs not in support of super guarantee raise

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By Cameron Micallef · August 08 2019
Reading:
egg
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egg
Former Prime Minister Paul Keating

Former prime minister Paul Keating, the man behind compulsory superannuation’s implementation in Australia, has slammed those opposing a raise from 9.5 per cent to 12 per cent of an individual’s income for the super guarantee scheme.

The former prime minister’s comments come after a number of Liberal backbenchers voiced concern against such an increase, and saw Mr Keating compare them to “climate change deniers” and “anti-vaxxers.”

Despite the concerns around wage growth, Mr Keating has defended an increase to the employer contribution from 9.5 per cent to 12 per cent for all Australians.

“This is the great lie and boggy analysis,” the former PM said of the wage growth issue0146s effect on super.

He rejected MP claims that argued a rise in superannuation guarantee payments would see a loss in wage increases.

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“Alternatively, if you don’t take the 2.5 per cent, you’ll pick up 2.5 per cent in wages. But it’s demonstrably false because nobody since 2014 has had an increase in super, yet wages have not increased at all,” continued Mr Keating.

Mr Keating said instead that workers can choose between something and nothing, with compulsory superannuation enabling a rise in overall income.

The former prime minister also condemned research by the Grattan Institute, which is claiming that a raise in the superannuation requirements would see middle-income Australians going backwards due to lowering of pension rates.

The Grattan Institutions research “showed that higher compulsory super wouldn’t be in the interests of many working Australians”.

“It would mean middle-income workers giving up wages of up to 2.5 per cent while working, in exchange for less than 1 per cent boost to their retirement incomes,” it stated.

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Keating slams MPs not in support of super guarantee raise
Former Prime Minister Paul Keating
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About the author

Cameron is a journalist for Momentum Media's Nestegg. 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 leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's Nestegg. 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 leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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