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Compulsory super is higher than ever at 12%. But cutting it would hurt low-paid workers most

By Mark Melatos, Associate Professor of Economics, University of Sydney

A central element of Australia’s superannuation system is the superannuation guarantee (SG). This is the compulsory 12% of an employee’s earnings that an employer must pay into the employee’s nominated superannuation fund.

The compulsory contribution rate has risen steadily from 3% when it was introduced in 1992 to 12% since…

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