Extra 3% Super Guarantee Prescribed by Dr Henry!

Extra 3% Super Guarantee Prescribed by Dr Henry!

Are you?	- An employee?
At a glance:	- The release of the Henry Tax Review has seen the Federal Government implement an increase in the level of the superannuation guarantee to help increase superannuation savings.
You should:	- Be aware of the proposed increase to superannuation guarantee contributions. - Contact us if you require any clarification or advice.

1.	According to the Henry Tax Review, the level of retirement savings will be a major concern for the Government in the future and put significant strain on the Government's pension scheme.
2.	To combat this issue, the Government has announced that it will be increasing the mandatory superannuation guarantee to 12%.
3.	Currently, employers are required to pay 9% of an employee's ordinary times earnings into the employee's superannuation fund to help save for their retirement [click here for more information].
4.	The measure to increase this to 12% will be slowly phased in from July 1, 2013 and is expected to increase retirement savings by around $108,000 over an "average 30 year old person's" lifetime.
5.	For more information on this proposal and the other recommendations by Dr Ken Henry, visit the Tax Review website at www.futuretax.gov.au.