29 May 2013

More super for more Australians


Joint media release with 
the Hon Bill Shorten MP
Minister for Employment and Workplace Relations
Minister for Financial Services and Superannuation 

Australians will be able to see for themselves how they will benefit from the Gillard Government's superannuation reforms through updates to the More Super website.

With only a month until the first increase to the Super Guarantee (SG) commences, updates to the calculator will ensure Australians can accurately assess how much better off they will be under the changes.

The Gillard Government is boosting the superannuation savings of hard-working Australians by:

  • Gradually increasing the Superannuation Guarantee rate from 9 per cent to 12 per cent, from 1 July 2013 to 1 July 2019. This will boost the retirement savings of around 8.4 million workers.
  • Providing the Low Income Superannuation Contribution for people earning up to $37,000 from 1 July 2012. This will provide 3.6 million workers on low and modest wages, including 2.2 million women, with a tax cut on their superannuation contributions of up to $500 a year.
  • Abolishing the Superannuation Guarantee maximum age limit from 1 July 2013, enabling workers aged 70 and over to receive the SG for the first time. This will benefit around 51,000 workers aged 70 and over, who would otherwise not be entitled to SG contributions.
  • Increasing the concessional contribution caps to $35,000 for Australians aged 60 and over from 1 July 2013 and extending this to Australians aged 50 and over from 1 July 2014. This will benefit around 171,000 Australians aged 60 and over in 2013‑14 and around 363,000 Australians aged 50 and over in 2014‑15.

Labor's plan will boost the national pool of superannuation savings by more than $500 billion by 2037.

For a 30 year old on average full-time wages, the Government's changes will add an additional $127,000 into their superannuation by the time they retire at 67.

In stark contrast to the Gillard Government's plans to increase superannuation, Mr Abbott has broken his promise to 8.4 million Australian employees not to touch their super and instead is proposing to hit the retirement savings of working Australians.

Mr Abbott has described superannuation as a 'con-job' and a 'confidence trick', and as recently as last year said:

"We have always as a Coalition been against compulsory superannuation increases.”

23 MARCH 2012

The choice at the next election couldn't be clearer.

Labor is the party of super – we created it and we're the only political party interested in growing the retirement savings of hard-working Australians.

The only thing Tony Abbott and the Liberal Party are interested in is cutting superannuation to the bone.

To find out how much the Gillard Government's superannuation changes could increase your superannuation, enter some basic information into the Super Calculator.