Super returns to wages game

The Federal Government has signalled it believes it can use an increase in the superannuation guarantee to reduce wages pressure.

The Assistant Treasurer and Minister for Financial Services, Bill Shorten, has indicated he views the superannuation guarantee in similar fashion to the former Hawke/Keating Government — as a non-wage benefit to workers.

Speaking on radio late last week, Shorten described superannuation as being “one of the interesting levers which can help diffuse inflation going forward”.

In doing so, he suggested that workers should be prepared to accept the Government’s promised increase in the superannuation from its existing level of 9 per cent to 12 per cent over time as a reason to reduce wages pressure.

“Superannuation means, of course, that people don't get the money now, but rather than contributing to or seeing that eaten up by inflation or interest rates, they save this money, it gets concessional treatment in the tax system, so you're only paying 15 cents in the dollar on it,” Shorten said.

“And I think that what the Government's put in place to encourage superannuation moving from 9 to 12 per cent will have a dampening effect on wage growth.”