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Superannuation – What is in Wayne Swan’s budget?
14 June 2010
With the announcements of the federal budget and the Henry Tax Review now complete, Superannuation is on a lot of people’s minds.
Kathy Jackson, HSU National Secretary, said, "Just about everyone in our industry will get a super boost of some kind. The superannuation changes in the budget will especially benefit members on low incomes and members nearing retirement."
Key changes to superannuation include the following:
- The superannuation guarantee will gradually rise to 12% by 2019-20, providing the average health and community services worker with extra superannuation every year.
- If you are earning less than $37,000 per year, the Australian Government will contribute up to a maximum $500 to your superannuation fund each year (based on 15% of your superannuation guarantee payments).
- If you are over 50 and have less than $500,000 in your super, you will be able to make concessional contributions ('before tax contributions' such as salary sacrificed contributions) up to $50,000 from 2012 (without incurring a hefty tax bill).
- If you are aged 70-74 and still working, you will be now be eligible for superannuation guarantee payments from your employer.
- The maximum co-contribution amount an individual can receive from the Government will remain at $1,000 per year. Currently, if you earn under $61,920, the Government will match any personal after-tax super contributions made by you up to $1,000 (depending on the amount you contribute and your income).
"Whether it is the increase in the superannuation guarantee or the increase in the age limit for super to 74 or the government's super co-contribution payment, there is a super benefit in this for all of us", Kathy said. If you need super advice, contact your super fund.
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