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Could raising SG help rebuild the economy? 

September 21st, 2020

New research from Industry Super Australia (ISA) claims industry super funds (like First Super) plan to invest $33 billion in the economy over the next five years, playing a crucial role in the country’s financial recovery from coronavirus. The planned investment is expected to stimulate business activity and create hundreds of thousands of jobs.  

However, these plans could be affected if the Federal Government backflips on a legislated rise in the superannuation guarantee (SG) rate. Between now and 2025, the SG is set to increase from 9.5% to 12%. 

A delay or cancellation would reduce the contributions flowing into super, in turn reducing the funds available for investing into the economy. 

KEY FINDINGS FROM THE RESEARCH 

According to ISA: 

  • A member is estimated to be $30,250 better off on average if they have an industry super fund account; 
  • Investments by industry super funds have directly contributed to economic growth and delivered benefits to all Australians; 
  • Forecast spending of $19.5 billion will create over 200,000 jobs between 2020 and 2030; 
  • Industry super’s investment plans will save the federal budget $2.7 billion through higher tax receipts, lower pension payments, and lower interest costs. 

You can read the full report from Industry Super Australia here: Super in the Economy 2020. 

THE INDUSTRY SUPER DIFFERENCE 

First Super is an industry super fund, which means we are run for the benefit of our members. We put your interests first when it comes to:

To us, being a super fund is more than what happens when you stop working – it’s also about what we can do for you today.