Older Australians to be able to contribute more to super
The Federal Government has introduced legislation before Parliament that will allow Australians over 60 from July, and those over 50 from July 2014, to be able to contribute up to $10,000 more to their super at the concessional tax rate.
Federal Minister for Superannuation, Bill Shorten, introduced the Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013.
"The Government believes that it is important to allow people who have not had the benefit of the Superannuation Guarantee for their whole working lives to have the ability to contribute more to their super as they near retirement," Minister Shorten said.
Accordingly, the Government has bought forward the start date for the new higher cap to 1 July 2013 for people aged 60 and over. Individuals aged 50 and over will be able to access the higher cap from 1 July 2014.
It is estimated that 171,000 people will benefit in 2013â€‘14 when the new higher cap is introduced for individuals aged 60 and over, and around 363,000 people will benefit in 2014-15 when eligibility is extended to individuals aged 50 and over.