- Superannuation increase delayed due to Mining Tax deal
The recent agreement between the Abbott Government and Palmer United Party, will see the Mining Tax repealed and delay the superannuation increase until 2021.
The proposed incremental increase to the amounts of superannuation to 12 per cent by 2019/2020 through annual increases will be frozen until 2021. The superannuation increase which currently stands at nine and a half per cent will remain in place until 1 July 2021.
This delay will have a significant impact on the superannuation balances of many Australians, with the average worker expected to lose up to $3,500 of superannuation contributions over seven years. This could potentially reduce their account balance by five per cent or approximately $40,000.
In addition to the delay of the superannuation increase, the low income superannuation contribution will be abolished from 1 July 2017 and the Income Support Bonus and Schoolkids Bonus will remain in place until 31 December 2016.
In light of these proposed changes we continue to encourage individuals to review their contributions into superannuation. As the contribution caps changed on 1 July 2014 individuals who are aged 49 years and below can now make concessional contributions of up to $30,000 while those who are aged 49 years and over are subject to a $35,000 cap.
Head of Corporate Superannuation
T +61 3 8663 6292