4th Nov 2011
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Age limit abolished
superannuation, super, superannuation guarantee, age limit, finance, money

The Federal Government announced on Wednesday that it would be abolishing the age limit for superannuation guarantee contributions. The changes will take effect on 1 July 2013.

The changes were added to a deal which boosts the super guarantee of all workers from nine per cent to 12 per cent. The increase in the super guarantee will take a few years to add significantly to older workers’ nest eggs, so removing the age limit on super contributions is a real win for Australians looking to retire in the next short while.

It’s possible we shouldn’t be jumping for joy yet - the package of superannuation reforms is tied to the government’s mining tax, and if the mining tax is not passed then the superannuation reforms will not go through. This is because the Mineral Resource Rent Tax (the mining tax) will be used to partly fund the boost in superannuation. The government has done this for two reasons. The first is to ensure that some of the mining tax is going directly back into the community, and the second is to make it more difficult for the opposition to oppose the mining tax.

The original plan was to simply increase the superannuation guarantee contribution age limit to 75. But when Bill Shorton announced the “historic” changes yesterday he stated that “Australians should not have to work hard and retire poor”.

What about you? Do you think that the increased super guarantee and the abolishing of the upper age limit is too little too late to benefit those considering retirement now? Comment and let us know what you think.





    COMMENTS

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    Subieagle
    4th Nov 2011
    2:19pm
    Too late talk about blackmailing the opposition.I loathe this govt with every fibre of my being
    Histoman
    4th Nov 2011
    2:41pm
    You are so right subieagle; it is like dangling a carrot in front of those nearing retiremnet age for approval of that tax, while blakmailing the opposition. What a government !!; I wonder what's the next sneaky thing they will carry out ? Who the hell let Gillard in?
    Kaye Fallick
    7th Nov 2011
    10:34am
    Many governments have said they want older workers to work longer.
    This is the first government to remove the age ban on super contributions so older workers are no longer discriminated against.
    What's not to like?
    SJQRP
    7th Nov 2011
    12:22pm
    Please explain:
    "so removing the age limit on super contributions is a real win for Australians looking to retire in the next short while"

    Depends what is a short while - will have to be after 1JUL13 to have any effect at all and then you will have work for some furthr years to gain much, and there would be no gain if you are under an approved scheme, e.g. Qld State govt workers.
    swag
    8th Nov 2011
    9:10am
    Currently, what is the age limit for superannuation?
    Drew
    8th Nov 2011
    12:02pm
    The current age limit for SG contributions is 70 years of age. Employers can make voluntary deductible contributions for workers up to the age of 75 and those who are self-employed can make deductible contributions until they are 75.
    Bruce H
    8th Nov 2011
    6:05pm
    Unfortunately there is now too much emotion about Australian politics. The main reason these changes are linked to the mining tax is that the government knows that things have to be paid for, something the opposition either has not grasped or simply wishes to ignore. That's one of the responsibilities of actually governing. Read Michael Pascoe's SMH article to get a more informed view:

    http://www.smh.com.au/opinion/politics/coalition-guilty-of-credibility-failure-20111107-1n3wt.html


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