Millions of Australians will get a boost to their retirement savings when the superannuation guarantee increases in less than a month’s time.
Starting July 1, the required contribution from an employee’s salary to their superannuation account will increase from 11.5 percent to 12 percent.
This marks the fifth and last planned increase that started taking effect in 2021. However, the Super Members Council noted that many of the 12 million Australians who will be affected are unaware of the approaching change.
“This increase to people’s super is a powerful step forward for Australians’ financial futures,” chief executive Misha Schubert said.
“But too many people don’t yet know it’s happening.”
The body has released a video to raise awareness of the change as part of its push to increase Australians’ knowledge of the superannuation system.
“We have observed that when individuals gain a better comprehension of superannuation and its role in supporting their retirement, they tend to become more engaged. This engagement can significantly impact their financial future,” Schubert stated.
“When Australians understand how super works, have an expectation it will be critical to their wellbeing in retirement, and take a closer interest in their super, they are much more likely to take actions like comparing fees, checking their investment options, making additional contributions, and checking for missing super contributions.”
That tax will affect 80,000 wealthy Australians – or about 0.5 per cent of people with a super account.
