Labor is determined to ensure Australians who work hard their entire lives don't retire poor.
That's why from tomorrow, around 8.4 million hard working Australians will see more going into their retirement savings.
The Superannuation Guarantee will increase tomorrow, 1 July, from 9 to 9.25 per cent and continue to increase gradually to 12 per cent over coming years.
This increase will mean a 30 year old on average full-time wages who retires at 67 will retire with around $127,000 extra in superannuation savings.
In addition, from 1 July –
- Around 3.6 million low income and part time working Australians earning $37,000 or less, including 2.1 million women, will receive a tax cut on their superannuation contribution of up to $500 a year.
- The upper age limit on universal super will be abolished meaning working Australians over 70 will receive the universal superannuation contribution for the first time.
- Australians reaching retirement (over 60) can now contribute up to $10,000 more to their super at the concessional tax rate.
- First MySuper products will become available to provide simple, cost effective default superannuation products, which will deliver a significant improvement in the retirement outcomes of ordinary working Australians.
- The trans-Tasman retirement savings portability scheme commences, helping thousands of Australians and New Zealanders who move across the Tasman Sea each year consolidate their retirement savings.
Labor's superannuation reforms will boost our national pool of superannuation savings by more than $500 billion by 2037.
Superannuation contributes significantly to national savings, employment, financial stability and economic growth and takes the pressure off the Age Pension.
Labor created superannuation, we have grown it, supported it and we are now squarely focused on ensuring it has a strong future.