Millions of Australians are set to receive a significant increase in their superannuation contributions, although many remain unaware of this development. Effective from today, the superannuation guarantee rate has risen from 11.5% to 12% of an employee’s earnings. This adjustment will result in an additional average contribution of $317 to the retirement savings of Australian workers over the next financial year.
For a typical 30-year-old, this 0.5% increase in contributions could translate to an extra $22,000 in their super balance by the time they retire. Additionally, in a landmark move, superannuation will now also be applied to Commonwealth Parental Leave Pay, which is expected to benefit numerous families across the country. This change ensures that women on paid maternity leave will continue to receive super contributions, thereby addressing longstanding issues surrounding the gender super gap, which currently sees a disparity of around $50,000 for Australians nearing retirement.
Misha Schubert, CEO of Super Members Council, highlighted that many Australians remain oblivious to these advantageous changes. She emphasised that both the rise in the superannuation guarantee and the inclusion of parental leave payments in super calculations are significant steps towards bolstering retirement savings, particularly benefiting women and younger workers. Schubert also pointed out the pressing need for better public awareness regarding superannuation, asserting that many individuals could be missing out on increased retirement savings simply because they have not reviewed their super funds recently.
In light of these changes, Australians are encouraged to engage with their superannuation to ensure they are making the most of their retirement savings opportunities. This initiative is vital as more awareness can lead to better financial security in the future.