As part of its response to the Henry Review, the Government has accepted a number of recommendations in the superannuation area. A summary is contained below

Increased contribution cap for those aged 50 and over

Under the current rules, the current superannuation concessional contributions cap for individuals aged 50 or over is a transitional cap scheduled to expire from 1 July 2012

From 1 July 2012, a separate higher concessional contributions cap of $50,000 (indexed) will be available permanently for those aged 50 or over who have total superannuation balances of less than $500,000.

Increasing the Superannuation Guarantee (SG) rate to 12%

The SG rate will be increased gradually with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019‐20, when the SG rate will be set at 12 per cent.



Raising the Superannuation Guarantee (SG) age limit

This measure raises the superannuation guarantee (SG) age limit from 70 to 75:

• Workers aged 70 to 74 will be eligible to have SG contributions made on their behalf for the first time.
• The new SG age limit will now match the age limit for voluntary and self‐employed contributions.

This measure will commence from 1 July 2013.

Low Income Earners Government Contribution

This measure will provide a superannuation contribution of up to $500 annually for individuals on adjusted taxable incomes of up to $37,000.

The amount payable under this measure will be calculated by applying a 15 per cent matching rate to the concessional contributions made by or for individuals on adjusted taxable incomes of up to $37,000, with an annual maximum amount payable of $500 (not indexed). The amount will be paid into a superannuation account of an individual to directly boost their retirement savings.

Concessional superannuation contributions made from 2012‐13 will be eligible for the Government contribution. This will be paid in 2013‐14.