Government reforms to superannuation from 1 July of this year are intended to make our super system stronger and more efficient to better protect the retirement savings of current and future generations.
The Government has announced that improvements will:
- reduce unnecessary fees and charges
- increase retirement savings
- help provide a more comfortable and secure retirement
The superannuation guarantee (SG) rate will gradually increase from 9% to 12% between 1 July 2013 and 1 July 2019. The SG age limit of 70 will be removed from 1 July 2013, and employers will be required to contribute to complying super funds of eligible mature age employees 70 years old and older.
The government estimates 8.4 million employees will benefit from the changes which are projected to generate an additional $10 billion by 2020 and $35 billion by 2035 in private saving each year.
In aggregate, the measures are projected to add around $500 billion to the existing pool of superannuation savings, and contribute to further increasing national savings by around 0.4 per cent of GDP by 2035.
Sources
- Australian Taxation Office, Changes to the super guarantee, accessed 1 May 2013.
- Australian Government, Super: Your money your future, accessed 1 May 2013.
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