Australians will have their superannuation guarantee contributions frozen for the next seven years as part of a compromise deal to abolish the mining tax. A recent article on news.com.au discusses the implications that where brought in as part of the recent changes to mining tax.
What this means for you is that current law would have seen the employer superannuation contributions increase to 12% by 2019. However, under the mining tax repeal amendments, it won’t hit that level until 2025. The current rate of superannuation contribution is at 9.5% and will stay that way until 2021.
In real-terms this means that a 40-year old worker on a salary of $80,000 will be $21,930 worse off, according to analysis by Industry Super Australia for The Australian. A 30-year old on the same salary will have $31,411 shaved off by the time they can access their superannuation. A 30-year old on a high income of $175,000 will be hit to the tune of $68,711.
Also, it is not all bad for business groups as they see it as a welcoming change, arguing that it lifted a burden from them and claimed that it would allow them to hire more staff according to Industry Super Australia for The Australian.
If you have any queries regarding employer superannuation contributions, please get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
