Super increase goes ahead on July 1: ATO

Written By Unknown on Jumat, 21 Juni 2013 | 18.59

The ATO is pushing ahead with plans to increase the compulsory superannuation guarantee. Source: AAP

THE Australian Taxation Office (ATO) is pushing on with plans to increase the compulsory superannuation guarantee to 9.25 per cent, despite the federal opposition threatening to suspend any rise if in government.

The super guarantee increase from its current rate of nine per cent starts on July 1.

ATO deputy commissioner for superannuation Alison Lendon said there has been confusion around the super guarantee rate rise following recent commentary regarding potential deferments.

"Employers and individuals should be in no doubt that the scheduled super guarantee rate rise in 2013 is law and will apply from July 1 this year," she said in a statement.

Ms Lendon also confirmed the existing upper age limit for employee super guarantee eligibility will be removed, meaning employers need to start making contributions to eligible employees who are aged 70 or over.

Under a Labor government the super guarantee will continue to increase each year until it reaches 12 per cent from July 1, 2019.

But the coalition has said if it wins power at the September 14 election, such increases will be suspended for two years.


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