superannuation contribution changes

Superannuation reform has been ongoing over the past few years in response to the 2010 Super System Review (known as the Cooper Review). The reforms aim to make superannuation stronger and more efficient, while maximising retirement income for members. The most significant reform for employers is an increase in the super guarantee – the minimum super contribution employers must pay on behalf of their employees – which is currently sitting at 9.5%. The rate will remain at 9.5% until 30 June 2021 and then increase by

0.5 percentage points each year until it reaches 12%. The previous super guarantee age limit of 70 has been removed. Since 1 July 2013, employers have been required to contribute to super funds for all employees, regardless of age.

Other reforms include changes to the super framework and the way superannuation is administered.

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