Superannuation
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Proposed changes to super
The federal Government has announced some major changes to super that could significantly increase your retirement savings.
Some of these changes are currently going through Parliament, and all have a number of stages to go through before they become law.
But it is worth noting that some of the biggest of the changes, if passed, could have a major, positive impact on your retirement savings. Some of the proposals include:
More for your retirement savings:
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Superannuation Guarantee employer contributions to your super will gradually increase from 9% to 12% between 2013 and 2019
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Low-income earners earning up to $37,000 pa. will gain an extra tax break of up to $500 yearly paid direct into their super account
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The age limit for employees who receive super guarantee will be abolished
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Individuals over age 50 with less than $500,000 super savings will be able to put more into their super
Changes to financial advice:
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A ban on commissions and payments to Financial Advisers from product providers
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A requirement that Financial Advisers act in the best interests of their clients
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‘Opt in’ clauses to ensure you only receive and pay for financial advice if, and when, you want it.
Better protection for low-income earners
These reforms should reduce the cost of financial advice and remove hidden fees that can reduce your super.
Last updated on 14th December 2011
