More super for older workers

From 1 July 2013 older workers may be eligible to earn more superannuation

More super for older workers

From 1 July 2013 changes will be made to the employer superannuation guarantee which may see older workers eligible to earn more superannuation.

There are two items of legislation about to take effect which could see your super balance boosted. The first is the increase in the rate of employer superannuation guarantee (SG). Since 1 July 2002, the rate of super paid by an employer on your behalf has been nine per cent, but this is about to change. The guarantee will increase each year until it reaches 12 per cent by 2019. The table below details each annual increase:

Year

SG rate

2013

9.25%

2014

9.5%

2015

10%

2016

10.5%

2017

11%

2018

11.5%

2019

12%

Of course, it’s worth noting that if you’re currently on a total salary package, then your actual take home pay may reduce as your increased super guarantee will have to fall within that agreed package.

The second measure which could boost the super balance of those still working is the removal of the upper age limit for employer super payments. Now, if you’re over 70 and still working, you could be eligible for SG payments from your employer.

To find out more about the imminent changes to the super guarantee, visit Superfuture.gov.au



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    COMMENTS

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    niemakawa
    24th Jun 2013
    1:22pm
    Personally I do not agree that this burden should be placed on the employer. Every working person should make a compulsory contribution as well, say 5% of salary/wage. Can't keep stinging the employer. Another drag on businesses thanks to the incompetent Labor Party. Just another policy disaster by ALP.
    Paddles
    24th Jun 2013
    1:56pm
    I agree with macjam's comment re the additional impost borne by employers alone. After all, they derive no benefit from it and it may well be the difference between viability or otherwise of their business.

    I applaud the notion of compulsory superannuation for all workers and I regret that Australia came to it rather late. I recall being told by a friend from (then) West Germany that they had deducted from their wages/salaries 12.5% of their gross earnings that went to provide lifetime health care and a pension after they ceased working. As a result, all workers enjoyed a comfortable standard of living in retirement.
    Nan Norma
    24th Jun 2013
    4:32pm
    I believe the British also paid into an insurance scheme so they would have an extra pension besides their state pension when they retired. Unfortunately when they came here Centralink deducted it out of their pension.
    Rob
    24th Jun 2013
    4:44pm
    So they should Norma. It an asset/income and should be included if they are putting their hand out for an Aust pendion,

    I like your comments macjam. We seem yo have a practice under labor of trying to kill the goose that lsys......,