A new bill was introduced into parliament to increase compulsory super contributions. The Bill also proposes to increase the age of an employee at which the super guarantee no longer needs to be provided from 70 to 75. If it passes thye upper house the first increase will be next year, when super contributions will go from 9 to 9.25%.

Another amendment has been introduced to make a "low income superannuation contribution". If it gets through will apply to eligible concessional contributions of an individual for the 2012-13 income year. What is it?
A person will be entitled to the low income superannuation contribution if:

• the person has "concessional contributions" for the year; the amount payable for the individual is $20 or more.
• the individual's "adjusted taxable income" does not exceed $37,000;
  
  
• the individual is not a holder of a temporary resident visa. Note that New Zealand citizens in Australia do not hold a temporary resident visa and are as such eligible for the payment;
  
  
• the individual satisfies an income test in which 10% or more of their total income is derived from employment activities or carrying on a business;
  

The amount payable by the Government will be calculated by applying a 15% rate to the total eligible "concessional contributions" made by or for eligible individuals during 2012-13 and later income years. The maximum amount payable will be $500. This will effectively offset the 15% contributions tax payable by a superannuation funds on superannuation guarantee contributions up to that amount (IE $37,000 x 9% x 15% = $500)