The Government has announced that individuals earning less than $37,000 per year will pay no contributions tax on superannuation guarantee contributions made from 1 July 2012. This results in a superannuation tax saving of up to $500 for low income earners. The tax saving will be paid directly into the superannuation fund rather than the individual’s bank account.
The Government has also announced that it will be removing the age limit on superannuation guarantee (SG) contributions entirely, beginning on 1 July 2013. This will make it compulsory for employers to provide SG contributions for all employees without any restriction.