03 May 10 Ministers comment on proposed super changes
In joint media release No 2010/027, issued 2 May 2010, the Treasurer, Wayne Swan, and the Minister for Financial Services, Superannuation and Corporate Law and Minister for Human Services, Chris Bowen, commented on the proposed superannuation changes announced on the release of the Henry Review.
- A 12% Superannuation Guarantee (SG) - commencing with a 0.25 increase in 2013-14 and 2014-15, followed by 0.5 increments until the SG reaches 12% by 2019-20. The three year lead time recognises that employers and employees need to factor this into future wage negotiations.
- A low income earners Government contribution - from 1 July 2012. The Government will provide a contribution of up to $500 annually into the superannuation account of workers on adjusted taxable incomes of up to $37,000. This will provide a reward for savings for low income earners by ensuring no tax is paid on SG contributions. The Government will also retain the co-contribution scheme.
- Concessional superannuation contribution caps for those nearing retirement - from 1 July 2012. Workers aged 50 and over with superannuation balances below $500,000 will be able to make up to $50,000 in annual, concessional superannuation contributions. This measure is expected to benefit 275,000 people.
- Raising the Superannuation Guarantee age limit from 70 to 75 - from 1 July 2013. The SG age limit will be raised to 75, which for the first time means workers aged 70 to 74 to be eligible to have SG contributions made on their behalf. Around 33,000 employees are expected to benefit from this measure.