'Super rise backflip threatens $33b investment pipeline'

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Industry funds are warning a delay in the super guarantee rise will put at risk investment worth $33 billion over the next five years and undermine the federal government's plan for an economic recovery from the pandemic | JennieDuke

, pressure is mounting on the federal government to reveal a focus on new projects and stimulus to boost job-creating activity in the October budget.

However, Treasurer Josh Frydenberg has also signalled that the legislated super guarantee rise is being considered as research from the Reserve Bank and the Grattan Institute shows it would come at the expense of wage growth and jobs during the worst recession in 90 years.Industry Super chief economist Stephen Anthony said any move to delay the increase, which is set to rise from 9.

"If the super guarantee increase is dropped all bets are off. If you don't know what tomorrow brings you cannot do cap ex [capital expenditure]," Mr Anthony said. "The whole next five years is premised on these settings being unchanged."Mr Anthony said there were some policymakers looking to focus on the short-term when it came to super, with a"We rely on policy certainty to make judgments and without that we lose freedom in terms of long-term decisions.

"Our economic recovery and workers' dignity in retirement both hinge on stable and optimal policy settings including the promised super guarantee rise and preserving savings for retirement," Mr Dean said in a statement. Industry Super Australia specifically identified opportunities for extra spending in areas like agriculture, social housing, aged care, private equity and business lending but has recommended procurement policies be examined to make it easier for super funds to invest.

 

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