Superannuation contributions are set to increase from July but politicians and business leaders are warning the hike will come at a cost to weekly incomes. 

Federal member for Goldstein Tim Wilson told Luke Grant super contributions have made it more difficult to buy a home.

“Everybody’s cost for wages includes super,” he said. “So if you pay more in super, you get less in wages.

“Today, a young worker at the age of 18 contributes to their super before they’re even able to buy a house, which means we’re social engineering and making it harder for younger Australians to buy a home … and they’re getting less and less time to pay it off.

“That comes at the expense of their working life and their retirement.”

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Image: Getty