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Date of article: 30 November 2011
Last updated: 30 November 2011

Age limit for super guarantee abolished

From 1 July 2013, the age based limit for superannuation guarantee contributions will be abolished. This means employees age 70 and over will continue to receive superannuation guarantee contributions from their employer.

The changes will also enable employers tp claim a tax deduction for the superannuation guarantee contributions made to employees age 70 and over from 1 July 2013.

Background

Pre 1 July 2013 - Employers are required to pay superannuation guarantee contributions for an employee up to the age of 69. Upon an employee turning 70, the employer is no longer require to pay superannuation guarantee contributions.

If an employee was on a total remuneration package, presumably, the ceasing of the superannuation guarantee contributions would give rise to payment in cash instead.

 

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