Stronger, Fairer Super

Retirement incomes

The Australia to 2050 Report highlights that over the next 40 years, the ratio of working age Australians to those over 65 is projected to decrease from 5‑to‑1 to just 2.7‑to‑1.

The challenges presented by an ageing population mean reform is required to support retirement savings.

A 12 per cent superannuation guarantee

The Government will assist 8.4 million Australians improve their retirement savings by gradually increasing the superannuation guarantee to 12 per cent from 1 July 2013.

Fairer super concessions

The Government will provide new assistance to around 3.5 million low income Australians who currently receive little or no concession from the existing superannuation system.

From 1 July 2012, the Government will contribute up to $500 for workers with incomes up to $37,000. This means those workers will pay no tax on superannuation guarantee contributions in 2012‑13.

Helping people catch up

From 1 July 2012, the Government will assist older Australians to make catch‑up contributions, by allowing workers aged 50 and over with

balances below $500,000, to make up to $50,000 a year in concessional superannuation contributions.

Growing retirement savings

It is projected that the superannuation measures will increase the retirement balances for a worker aged 30 now, on full time average weekly earnings, by $108,000; and an individual with broken working patterns by $78,000.

These changes will increase Australian superannuation savings by $85 billion over 10 years, and $500 billion by 2035.

By increasing savings, the Government will help address issues raised by our ageing population and build prosperity for Australians.