It’s about time that the Government made the move to scrap the superannuation guarantee age limit.  This will give more experienced Australians a small incentive to remain in the workforce for longer.  There is an increasing “expertise gap” in the Australian workplace as the large number of baby boomers prepare to exit the workforce over the next 10 years.  Those who’s superannuation and overall wealth levels are not where they expected since the onset of the Global Financial Crisis and now the European Sovereign Debt Crisis, have a small incentive to stay in the workforce past age 70.

The new legislation means that from July 2013, up to 51,000 eligible workers aged 70 and over will receive the Superannuation Guarantee (SG) for the first time. “Making superannuation contributions compulsory for these mature-age employees will improve the adequacy and equity of the retirement income system, and provide an incentive to older Australians to remain in the workforce for longer,” said Superannuation Minister Bill Shorten.  The government said the changes will continue to allow employers to claim income tax deductions for SG contributions for workers aged 70 plus. So they should be, given the extra impost on businesses to pay for the extra superannuation if they employee people over age 70.

Grant Chapman