Historic boost to superannuation
Superannuation savings will see a boost with about 8.4 million Australians reportedly set to benefit as a result of legislation introduced to Parliament last week, in what has been described as the “biggest change to superannuation in 20 years”.
Superannuation savings will see a boost with about 8.4 million Australians reportedly set to benefit as a result of legislation introduced to Parliament last week, in what has been described as the “biggest change to superannuation in 20 years”.
The Superannuation Guarantee (Administration) Amendment Bill 2011 would increase the superannuation guarantee (SG) rate from 9% to 12%.
Describing it as an “historic reform”, assistant treasurer and Minister for Financial Services and Superannuation, Bill Shorten, said it was another “step towards increasing the adequacy and fairness of retirement incomes for Australian workers”.
“Australians should not have to work hard and retire poor… 9% super is simply not enough,” Mr Shorten claimed.
Under these reforms, an employee aged 30 years old and who earns about $70,000 today, would allegedly retire with an extra $108,000 in superannuation.
The increase in the SG would reportedly boost superannuation savings of Australian workers by about $500 billion by 2035.
“Together with the low income superannuation contribution and stronger super package reforms previously announced, the increase in the superannuation guarantee will improve the adequacy of retirement incomes and deliver a comfortable and secure retirement for current and future generations of Australian workers,” Mr Shorten said.
A win for older Australians
It was also revealed there would be no age limit for superannuation guarantee contributions, with this change starting on 1 July 2013.
