Abstract
The Superannuation Guarantee Levy (SGL) is scheduled to be increased from 2025, and there is evidence that an increase could be offset against wages. This paper uses a dynamic model to estimate the distribution of the impact of the SGL increase on both pre‐ and post‐retirement standards of living. The paper shows the increase in the SGL rate has the potential to reduce current consumption for the mean household below the “first level of financial stress” (derived from ABS (6530) Table 11.4) whilst only marginally increasing post‐retirement consumption. The SGL increase may not be an acceptable trade‐off between current consumption and retirement savings.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Economic Papers: A journal of applied economics and policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
