Your compulsory superannuation contribution you receive from your employer will be increased from 9 percent to 9.25 percent from 1 July 2013 as the changes to Superannuation Guarantee in Australia start to come into effect.
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The Superannuation Guarantee (Administration) Amendment Act 2012 received royal assent on 29 March 2012 will see:
- Compulsory Employer Superannuation contribution rate gradually increases from 9 percent to 12 percent between 1 July 2013 and 1 July 2019.
- From the 1 July 2013, the Superannuation Guarantee age limit of 70 will be removed, meaning employees will still be required to make superannuation contributions for eligible employees older than 70.
In addition, over 50s with low superannuation balances will be given more generous contribution caps in an effort to hopefully allow them to make catch up contributions. The changes are expected to cost the government $2.4 billion over the next 4 years.
While there are some question marks over whether or not the changes to superannuation will remain if there is a change in government in the upcoming 2013 Federal Election, the Australian Taxation Office is pushing through with the changes.
The federal opposition has said if it wins power, the increases will be suspended for two years.
Earlier this year, the government announced additional proposed changes to superannuation, which will see the concessional contributions cap for people over 60 increased to $35,000 from 1 July 2013 as well as a number of tax changes.
If you would like advice on superannuation investment strategy and how to consolidate your super funds or if you would like to compare your super fund with other available funds, contact ComparingExpert today on 1300 135 205.
Source: ATO Website 25 June 2013