Nine industry funds will spend some $33 billion on infrastructure and create 500,000 jobs between 2020 and 2023, according to a report from ISA – assuming a freeze to the SG increase doesn’t put their plans on ice.
“Our economic recovery and workers’ dignity in retirement both hinge on stable and optimal policy settings including the promised super guarantee rise and preserving savings for retirement,” said ISA chief executive Bernie Dean.
“Industry fund members are deeply invested in Australia’s future which is [helping rebuild] their retirement savings, keep businesses in business and Australians in jobs.”
ISA’s forecasts are “conservative estimates” based on the legislated “small, incremental increases” in the SG, but the group believes stable policy settings mean industry funds could invest more.
“Everyone benefits from a strong industry super system,” said ISA chief economist Stephen Anthony.
“It is proven to strengthen the economy, create jobs and grows workers’ retirement nest eggs, this report highlights the valuable opportunities that lie ahead.”
Calls to freeze the legislated increase to 12 per cent have intensified as Australia begins to recover from COVID-19, with Treasurer Josh Frydenberg flagging the possibility of a freeze or delay in response to concerns about post-recession wage growth.
“You’ve heard from no less an authority than the [governor] of the Reserve Bank of Australia who said that an increase to the superannuation guarantee will lead to less income,” Mr Frydenberg said.
“Less income leads to less spending. Less spending leads to less jobs. Don’t get me wrong. I’m all in favour of superannuation. I think it’s very important that people save for their retirement. But there is a trade-off, and the trade-off is between wages and saving for retirement.”
