Queenslanders want super to go up

Industry Super Australia

Queenslanders know that 12 per cent super is the key to a dignified retirement

Two out of three Queenslanders have backed the plan to increase the super rate, a new poll reveals.

A UMR poll of 1770 working age Australians with super, commissioned by Industry Super Australia (ISA), reveals nationally two thirds (67 per cent) want the government to stick to the legislated plan to incrementally lift the rate of super paid on top of wages from 9.5 per cent to 12 per cent.

In Queensland 67 per cent supported the super rate increase.

Over three weeks in May and June, amidst the Coronavirus downturn, the UMR poll asked respondents if the economic circumstances meant the super increase should be ditched or proceed as planned.

A majority backed the increase in all states, all capital cities and across all regions – including Brisbane and regional and rural Queensland.

The super rate is scheduled to go up from 9.5 per cent to 10 per cent next year then half a per cent each year until it reaches 12 per cent by 2025.

The polling is a community rebuttal to a small band of out of touch Coalition MPs who have called for the super guarantee to be scrapped because of Coronavirus. Workers fear the hit they will take to their retirement if the Treasurer and PM listen to the noisy backbenchers calling to cut the super rate rise.

The MPs, who themselves receive more than 15 per cent super, say that 9.5 per cent is enough for the average Australian to fund a dignified retirement. They use the specious argument that an increase comes at the expense of wages, despite recent economic evidence showing that wages mostly flatlined after the 2014 freeze on the super guarantee rate.

The Retirement Income Review panel will examine the super rate rise, it will report to the Treasurer next month.

Industry Super Australia research submitted to the panel, reveals dumping the legislated increase would cost a couple on average wages between $153,000 to $200,000 at retirement.

More than 170,000, mostly, young Australians accessing their super early through the emergency early release scheme, have wiped out their savings. The super rate increase is the best way to repair those balances and ensure there is not a future generation left without any retirement savings.

Freezing the super rate would leave more Australians languishing on the pension, a bill we would all pay through higher taxes.

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length.