The Government has amended its recent superannuation guarantee amendment bill to completely abolish the age limit for compulsory contributions.
Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten said that from 1 July 2013, eligible employees aged 70 and over will receive the superannuation guarantee for the first time.
"Making superannuation contributions compulsory for these mature-age employees will improve the adequacy and equity of the retirement income system, and provide an incentive to older Australians to remain in the workforce for longer," Shorten said.
The recently-announced Superannuation Guarantee (Administration) Amendment Bill 2011 raised the age limit for SG contributions from 65 to 70, but shortly after this Shorten told Parliament the Government would be abolishing the age limit altogether.
The changes will also ensure employers will be able to claim income tax deductions for superannuation guarantee contributions made to employees aged 70 and over from 1 July 2013, according to a Treasury statement.
It ensures employers will not bear a higher cost in employing workers 70 and over compared with other workers, the statement said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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