Finance Your Super Treasurer backs promised boost to workers’ super

Treasurer backs promised boost to workers’ super

josh frydenberg super guarantee
Treasurer Josh Frydenberg has defied calls by fellow Liberals to delay increasing the super guarantee. Photo: Getty
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Treasurer Josh Frydenberg has stared down fresh calls from within the Liberal Party to ditch a rise in the superannuation guarantee.

A rump of backbenchers has been agitating for the Coalition to scrap the legislated rise in compulsory super from 9.5 per cent to 12 per cent of a worker’s pay.

Labor has seized on the division, accusing the Morrison government of chipping away at the retirement savings scheme.

But Mr Frydenberg insists there are no plans to drop the long-promised hike in the guarantee.

“Whenever the Labor Party talks about superannuation, it borders on the hysterical,” he told Sky News on Thursday.

He said the federal opposition couldn’t cop any criticism of super.

“That makes them blind to the reform that we need in superannuation.”

Mr Frydenberg said the government passed laws to make super insurance for young people opt-in, consolidate inactive low-balance accounts and cap fees in some cases.

“It seems the Labor Party are stuck in the ideological conflicts of the past,” he said.

The guarantee is due to increase to 10 per cent in 2021/22 and then rise by 0.5 per cent in each of the following four years, hitting 12 per cent in 2025/26.

However, the scheduled rise have already been delayed several years by former treasurer Joe Hockey from an original plan made by Labor.

The federal government is holding the first major review of Australia’s retirement savings system in 30 years.

-with AAP

The New Daily is owned by Industry Super Holdings