The Grattan Institute says increasing superannuation will cost $20 billion in wages.Credit:Dominic Lorrimer
The Grattan Institute will on Friday release a report that shows the cut to wages from raising compulsory super is big.
"Really big,"said Grattan's super expert Brendan Coates."By the time it's fully implemented in 2025-26,a 12 per cent super guarantee will strip up to $20 billion from workers'wages each year,or nearly 1 per cent of Gross Domestic Product."
"The overwhelming evidence is that higher super contributions are paid for by lower wages for workers,"he said.
Mr Coates said the policy sits at odds with Labor's determination to fight a campaign on wages growth and would deliver an income boost in retirement when workers needed a pay-rise now.
In contrast,Labor's climate change policy is expected to subtract about 0.4 per cent from the economy by 2030,according Australian National University professor Warwick McKibbin.
Shadow treasurer Chris Bowen.Credit:Alex Ellinghausen
Shadow treasurer Chris Bowen said in March Labor would"brook no further delays"to increasing the guarantee or people would end up with $100,000 less in super by the time they retire.