{"title":"A Consumption v. Savings Analysis of Increasing the Superannuation Guarantee Levy","authors":"John R. Evans, Abdul Razeed","doi":"10.1111/1759-3441.12272","DOIUrl":null,"url":null,"abstract":"<p>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.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"39 1","pages":"48-57"},"PeriodicalIF":0.9000,"publicationDate":"2019-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/1759-3441.12272","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Papers","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1759-3441.12272","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 3
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.
期刊介绍：
Economic Papers is one of two journals published by the Economics Society of Australia. The journal features a balance of high quality research in applied economics and economic policy analysis which distinguishes it from other Australian journals. The intended audience is the broad range of economists working in business, government and academic communities within Australia and internationally who are interested in economic issues related to Australia and the Asia-Pacific region. Contributions are sought from economists working in these areas and should be written to be accessible to a wide section of our readership. All contributions are refereed.
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