Government announces major super reform
The Federal Government has introduced legislation before parliament that, if passed, will see the superannuation rate boosted by 3 per cent,
The Superannuation Guarantee (Administration) Amendment Bill 2011 will increase the superannuation guarantee (SG) rate from nine per cent to 12 per cent.
The Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, said“ the move was "another important step towards increasing the adequacy and fairness of retirement incomes for Australian workers.”
"Australians should not have to work hard and retire poor. Nine per cent super is simply not enough.”
The increase in the SG will boost the superannuation savings of Australian workers by around $500 billion by 2035. A proportion of these savings will be channelled back into the Australian economy to fund jobs and infrastructure.
Mr Shorten said the increase to SG will be funded through revenue generated by the mining and resources rent tax (MRRT), which has recently been introduced to parliament.
Mr Shorten’s announcement comes as Treasury confirmed it will be removing the age cap, currently 70, for employer super contribution
"People who are still contributing in the workforce beyond the age of 70 still deserve to be getting superannuation guarantee contributions," Mr Shorten said.