Australian govt to increase superannuation for ages 50 up
The Australian government will introduce higher superannuation concessional contribution caps for individuals aged 50 and over, following the release of a discussion paper by the Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten.
"This measure is one of a number of reforms, including increasing the superannuation guarantee rate to 12 per cent and a new government contribution for low income earners, which will deliver substantial improvements in retirement savings and a fairer distribution of superannuation taxation concessions," Mr Shorten said.
From 1 July 2012, individuals aged 50 and over with total superannuation balances below $500,000 will be able to make up to $50,000 in concessional superannuation contributions. This doubles the cap of $25,000 that is scheduled to apply from 1 July 2012.
"These changes will provide flexibility for those nearing retirement to make additional 'catch-up' contributions at the stage in their lives when they are most able to do so."
It is expected to benefit around 275,000 people, and will be of particular benefit to those who have had periods outside the workforce, for example, women with broken work patterns.
The discussion paper presents a number of options for key parameters of the measure, including the process for determining eligibility for the higher cap and methodology for determining total superannuation account balances.
"Superannuation is good for individuals, good for business and good for the economy. These specific changes give people aged 50 and over more flexibility to increase their super and I encourage all sections of the superannuation industry to make submissions on the discussion paper," Mr Shorten said.