Productivity Commission: Superannuation increase will stifle recovery

Last month, Reserve Bank governor Philip Lowe told a parliamentary committee that increasing the superannuation guarantee (SG) to 12% could reduce wages, curtail consumption, and drive up unemployment:

‘‘The evidence is that increases of this form do get offset by lower wage growth over time…

‘‘If this increase goes ahead, I would expect wage growth to be even lower than it otherwise would be.

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