21 Jun 2013

Super Contributions Start Climb To 12% From 1 July

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From the first of July 2013 the Superannuation Guarantee (SG), or the compulsory superannuation contribution made by your employer into your super fund, will rise from 9% to 9.25% of your salary each year. The Federal Labor Government has ensured that the base rate rises each year until compulsory contributions reach 12% on 1 July 2019.

This reform will boost the retirement savings of 8.4 million hard-working Australians. It means a 30 year old on average full-time wages who retires at age 67 will retire with an extra $127,000 in superannuation savings.

Workers can find out how much they will benefit from Federal Labor’s super reforms by entering some simple details into the online Super Calculator at the moresuper.gov.au website.

The Federal Labor Government has made additional changes to boost the benefits in retirement for Australian workers.

The Low Income Superannuation Contribution is for people earning up to $37,000 for contributions made from 1 July 2012. This will provide 3.6 million workers on low and modest wages, including over 2 million women, with a tax cut on their superannuation contributions of up to $500 a year.

The Superannuation Guarantee (SG) maximum age limit will be abolished from 1 July 2013, enabling workers aged 70 and over to receive the SG for the first time. This will benefit around 51,000 workers aged 70 and over, who would otherwise not be entitled to SG contributions.

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