The Federal Opposition has introduced a private member’s Bill — the Abolition of Age Limit on Payment of the Superannuation Guarantee Charge Bill 2011 — into the House of Representatives on 28 February 2011. The Superannuation Guarantee Charge Bill proposes to abolish the age limit on payment on the superannuation guarantee for employees. At present, the superannuation guarantee is payable for employees up to the age of 70.
If passed, the Bill will come into effect on the day it receives Royal Assent.
Additionally, the Federal Government has released a new discussion paper on increasing the concessional contribution caps for people aged 50 and over with a retirement savings balance of less than $500,000. This follows industry criticism of the recent lowering of the concessional caps to $25,000 for people less than 50, and $50,000 for people aged 50 and over.
According to government statistics the possible changes could have a positive impact on 275,000 people, and if introduced is expected to take effect from 1 July 2012.
The discussion paper consultation period ends on 25 March 2011.
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Provided by Leenane Templeton Financial Advisors
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