The Government is strengthening the retirement income system through a series of reforms, including historic increases in both the Superannuation Guarantee rate and the Age Pension.
Increase in the Superannuation Guarantee
From 1 July 2013, the Superannuation Guarantee (SG) rate will start to increase from 9 to 12 per cent, boosting the retirement savings of 8.4 million Australians, and increasing the pool of superannuation savings by more than $500 billion by 2037.
The SG rate will increase from 9 to 9.25 per cent from 1 July 2013, and will continue to increase each year until it reaches 12 per cent from 1 July 2019.
The Government will also abolish the maximum age limit on the SG from 1 July 2013. This reform will increase the incentive for workers aged 70 and over to remain in the workforce and further boost retirement savings.
Higher concessional cap for older Australians
The Government is simplifying the proposed higher concessional contributions cap by providing a $35,000 cap to anyone who meets certain age requirements. The start date for the higher cap will be brought forward to 1 July 2013 for people aged 60 and over. Those aged 50 and over will be able to access it from 1 July 2014.
Reduced fees and charges
The Government is helping to reduce the fees and charges paid by superannuation fund members through our SuperStream reforms and the introduction of MySuper — a simple, cost‑effective superannuation product.
Deferred lifetime annuities
The Government will encourage the take-up of deferred lifetime annuities by providing these products with the same concessional tax treatment that superannuation assets supporting income streams receive.
Historic increase in the Age Pension
The Government's 2009 Secure and Sustainable Pension Reforms provided the largest single increase in the Age Pension in its 100 year history and improved indexation arrangements. Since 2009 the maximum fortnightly rate, including supplements, has increased by around $207 for singles and $236 for couples (combined).