Minerals Resources Tax to boost superannuation
Revenues raised from the new Mineral Resource Rent Tax (MRRT)will go towards building superannuation savings, increasing Australia’s total superannuation savings to an estimated $6.2 trillion by 2036.
The MRRT, which was developed last year to replace the proposed Resource Super Profits Tax, will apply from 1 July 2012 following the government’s acceptance of recommendations of a Policy Transition Group. Draft legislation will be released for consultation before the end of June.
Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, said the reforms announced in Stronger, Fairer, Simpler in May last year will result in improved retirement savings and a fairer distribution of taxation concessions. He said that for a 30-year old worker earning $65,000 today, the MRRT would result in an extra $108,000 in superannuation savings at retirement.
Mr Shorten said that recent profit announcements by BHP Billiton ($11 Billion), Rio Tinto ($14 billion) and other big miners had confirmed that the time was right for the MRRT.
He said the Government's superannuation reforms include increasing the Superannuation Guarantee to 12 per cent from 1 July 2013. The Guarantee age limit will also rise from 70 to 75.
The Government will also contribute to the superannuation savings of low income earners from 1 July 2012.
"We'll ensure effectively no tax is paid on super guarantee contributions made on behalf of low income earners, by providing a contribution of up to $500 annually to individuals on adjusted taxable incomes of up to $37,000," Mr Shorten said.
As previously announced, 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.
More information is available at www.futuretax.gov.au.