Win for older workers and retirees
Making superannuation contributions compulsory for mature-age employees will improve adequacy and equity of the retirement income system, according to Minister for Financial Services and Superannuation, Bill Shorten. The win came for older working Australians recently when amendments to the Superannuation Guarantee (Administration) Amendment Bill 2011 were made.
Making superannuation contributions compulsory for mature-age employees will improve adequacy and equity of the retirement income system, according to Minister for Financial Services and Superannuation, Bill Shorten.
The win came for older working Australians recently when the House of Representatives passed amendments to the Superannuation Guarantee (Administration) Amendment Bill 2011 that abolish the superannuation guarantee age limit.
The changes would also allow employers to claim income tax deductions for superannuation guarantee contributions made to employees aged 70 years and over.
Mr Shorten also claimed the changes would provide “incentive” to older Australians to remain in the workforce longer.
From 1 July 2013, eligible employees aged 70 years and over will receive the superannuation guarantee for the first time.
A win also came for Australia’s 125,000 self-funded retirees who would benefit from an extension of drawdown relief for account-based pensions to the 2012-13 year, with a 25% reduction in the minimum payment amounts for these products.
The reduction in the minimum payment amounts will apply to account-based, allocated and market linked pensions.
Regulations giving effect to this change will be made before the new financial year.
