"Dignified retirement": Aussies set for $21k cash boost
The average Australian is set to receive a $21,000 cash boost following a change to superannuation contributions.
From July the superannuation guarantee increased from 11 to 11.5 per cent, meaning that the compulsory superannuation payments made by employers have risen.
This means that an average worker earning around $72,000 would pocket an extra $21,000 at retirement as a result of the permanent increase, according to an analysis by the Treasury Department.
“Wages growth and tax cuts are putting cash in people’s pockets now, and our increase to the super guarantee will put cash in people’s pockets for the future,” Treasurer Jim Chalmers said.
“This will make a meaningful difference for millions of Australians who deserve a dignified retirement.
“The superannuation guarantee has increased three times under our government.”
The government has been progressively increasing the super guarantee rate until it hits 12 per cent, which will come into effect from July 2025.
The concessional super contributions cap - the amount that you can invest into your super each year without copping extra tax and includes employer payments - also increased on July 1, up from $27,500 to $30,000 per year.
In addition to this, the after-tax super or non-concessional super contributions cap has also been increased from $110,000 to $120,000.
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