A Consumption v. Savings Analysis of Increasing the Superannuation Guarantee Levy

John R. Evans and Abdul Razeed

Economic Papers, 2020, vol. 39, issue 1, 48-57

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.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1759-3441.12272

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:econpa:v:39:y:2020:i:1:p:48-57

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Professor Guay Lim

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().