Abbott's super plan comes in for criticism

Superannuation industry bodies have slammed the Coalition's announcement that it will "not proceed" with proposals to lift the SG rate to 12 per cent.

Labor has said it will back a rise in SG – meaning the compulsory contribution paid into a worker's super account by their employer – from nine per cent of gross pay to 12 per cent by using funds obtained through its controversial mining tax.

However, the Coalition will not support the tax and is instead targeting $49.4 billion in savings, which will include scrapping plans to hike the SG rate.

Pauline Vamos, head of the Association of Superannuation Funds of Australia, told the Courier-Mail that the Coalition's announcement was a blow for employees hoping to save for a better retirement.

"I am absolutely astounded by this – it is a huge blow for workers," she said. "The industry will be fine but it is a blow for workers."

The comments may interest Aussies looking to compare term deposits ahead of tomorrow's (August 21st) federal election. According to Financial Services Council chief executive John Brogden, there is already a $695 billion gap between retirement savings and the minimum needed to deliver adequate incomes in retirement.

This article is brought to you by Mozo – Helping you compare term deposits