Murray calls for hike in super
Commonwealth Bank managing director David Murray has called on the government to raise compulsory superannuation payments.
Commonwealth Bank managing director David Murray has called on the government to raise compulsory superannuation payments.
Murray told a business gathering in Brisbane yesterday that superannuation guarantee levels are too low to cope with the country's current account deficit and must be raised.
He said the low level of savings was contributing to the weak Australian dollar and putting pres-sure on the Reserve Bank of Australia (RBA) to raise interest rates further.
"Australia is not saving enough to cope with a high current account deficit so the exchange rate will remain weak and interest rates under pressure over a considerable time unless the rate of savings is picked up," Murray said.
"If anything, I believe the rate of contributions to superannuation will have to rise."
Murray said Australia was spending its wealth as fast as it was being accumulated and it was drifting out of the country in the form of a large "chronic" current account deficit.
"Unless that is addressed in various policies then the Australian dollar won't be strong," he said.
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