Minister for Financial Services and Superannuation Bill Shorten today welcomed the passage of legislation through the House of Representatives which will allow older Australians to put more into their superannuation.
The Gillard Government believes people who have not had the benefit of the Superannuation Guarantee for their whole working lives should have the ability to contribute more to their superannuation as they near retirement.
The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 increases the concessional contributions cap to $35,000 for Australians aged 60 and over, from 1 July 2013.
This means Australians reaching retirement age during the next financial year can contribute up to $10,000 more to their super at the concessional tax rate.
It is estimated that 171,000 people will benefit in 2013‑14 when the new higher cap is introduced for individuals aged 60 and over, and around 363,000 people will benefit in 2014-15 when eligibility is extended to individuals aged 50 and over.
The Gillard Government wants our superannuation system to be fair and sustainable so all Australians can enjoy a comfortable and dignified retirement.
We are boosting the superannuation of hard working Australians by increasing the compulsory contribution from 9 per cent to 12 per cent starting 1 July 2013.
Under Labor, a person aged 30 today on average full-time earnings will retire with an extra $127,000 in superannuation savings.
In stark contrast, Tony Abbott and the Liberal party will cut the retirement savings of hard working Australians to the bone.
Tony Abbott will also cut the Low Income Superannuation Contribution which delivers up to $500 extra to those earning $37,000 or less a year.
This will cut the retirement savings of almost 3.6 million Australians, including 2.2 million Australian women.
The choice at the next election couldn’t be clearer.
Labor created super and is the only political party interested in growing the retirement savings of hard working Australians.