The Federal Government has introduced changes to the superannuation system designed to make Australia’s superannuation system stronger and more efficient.
These reforms are called Stronger Super and have been introduced following a Government review of the country’s superannuation system in 2009.
From now until June 2016 the legislated changes will aim to simplify the superannuation system in a bid to help protect and maximise superannuation retirement income.
There are a number of important elements involved in the Stronger Super reforms:
SuperStream
SuperStream is designed to improve the processing of superannuation transactions and to reduce the time it takes for these transactions to occur.
The concept behind SuperStream is to reduce error and remove human involvement from the system.
Superannuation Guarantee rate rise
The Superannuation Guarantee rate is scheduled to increase to the 12 per cent target over the coming years. From 1 July 2014, this rate will become 9.5 per cent.
The upper age limit for paying the Superannuation Guarantee to an employee has also changed. Employers must now continue to pay eligible employees super if they are over 70 and continue to work.
SuperSeeker
SuperSeeker is a tool that has been developed to help people track their lost super. The ATO reports that more than $17 billion sits in lost and unclaimed super funds.
This program will also allows individuals to electronically transfer the lost super into an account they choose.