In a recent poll, nine out of 10 working Australians favor the Government's proposal to increase the superannuation guarantee (SG) to 12 per cent.

The poll, which was conducted by the Association of superannuation Funds of Australia, showed that Australians are giving a strong support of an SG increase from a wide range of age and salary demographics.

The support was higher in females, from low to middle-income earners, and younger people. The age range was between 25 to 29 years old.

Chief executive Pauline Vamos of ASFA commented that Australians have an idea on the benefits entailed on an increased SG rate.

Being self-sufficient in retirement and able to pursue an active lifestyle is not only important for retirees, but also for Australia’s consumer-based economy.

“The increase in the SG and the introduction of the rebate of contributions tax for low-income earners will have substantial and favourable impacts for all Australian workers with super,” Ms. Vamos said.

The data also showed that 40 years old income earners with a salary of $60,000 per year with a balance of $55, 000 will end up receiving an extra $60, 000 in retirement.

Ms. Vamos said many believed that increasing the SG may be a huge burden on the Government, since it would be funded by the Resources Super Profits Tax.

“Our research shows that the cost to the Budget of the phased increase is $240 million in 2013-14. This is less than 3 per cent of the projected $9 billion revenue from the RSPT,” she said.

She suggested that long-term cost to the Government would start early from savings in pensions and other benefits.