Super Guarantee Age Limit Abolished
The Government announced yesterday the abolition of the age limit on Super Guarantee contributions, with the passage of legislation through the parliament.
Basically, eligible employees aged 70 and over will for the first time be able to receive the superannuation guarantee from 1st July 2013. The Government state that this will increase the coverage of the superannuation guarantee scheme to an additional 51,000 Australians aged 70 and over who continue working. These changes also mean that employers will be able to claim income tax deductions for superannuation guarantee contributions made these employees, and hence ensures employers will not bear a higher cost in employing workers 70 and over compared with other workers.
The commencement date of 1st july 2013 was chosen to allow time for employers and older Australians to adjust to these new arrangements.
Amendments to the Superannuation Guarantee (Administration) Amendment Bill 2011 and the Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011 were made to give effect to these reforms and these passed the House of Representatives last week.
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