VOLUME 34 - ISSUE 4, SEPTEMBER 2020

Page 8

ROUNDTABLE

Deferral of the next SG rise warranted by economic reality A focus group of senior superannuation industry executives has agreed that a deferral of the next rise in the superannuation guarantee might be warranted in the economic circumstances but that it should be subject to independent review.

ATTENDING: Mike Taylor (MT) – Managing editor, Money Management and Super Review Paul Cahill (PC) – Chief executive, NESS Super Russell Mason (RM) – Superannuation partner, Deloitte Andrew Howard (AH) – Chief commercial officer, TAL

C

MT: Can we sensibly expect them to proceed with the rise which comes into effect next year when we already know the likelihood that we’re going to have a lot of unemployment and a recession? PC: Look, I think you use the appropriate word there, Mike. It’s a loaded question. You should sensibly, so that automatically makes it a loaded question. But you know we’ve been stuck at 9.5% for god knows how long. I appreciate we’re in times that no one has ever experienced before in their life and probably hopefully never will but the whole increase in the superannuation guarantee (SG) has been kicked around like a political football. My view is the Government will use the opportunity not to increase it or they’ll move it up to 10% and park it there for five years. Put it to sleep. But I can’t see the legislative timetable going through simply because any opportunity to cut something out to help the economy will absolutely be utilised. So, the best case for us is that we get it to 10% and it stays there for a few years while the economy regains its feet. But it wouldn’t surprise me if we were left at 9.5% for a not insignificant amount of time. RM: I think Paul is right, which is a real shame and the question becomes, if the economy is going into recession how quickly will it recover because it would be a shame to delay increases when the economy actually recovers quicker than expected. And there’s already

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