Low income workers to receive savings boost
From July of next year, low-income workers in Australia could have their superannuation contributions tax refunded.
A new plan proposed by Bill Shorten, the assistant treasurer, would see employees earning up to A$37,000 a year have their current 15 per cent tax contribution refunded back to their superannuation accounts.
While the payment will have a A$500 cap, it could make all the different to their bank savings accounts once they leave the workforce.
Mr Shorten – who is also minister for financial services and superannuation – said the government is also keen "to see this tax refund implemented because it will significantly increase the superannuation savings for those working families and households across the country that most need some extra help with setting aside savings for their retirement".
The MP also recently announced that the way that superannuation funds can claim tax rebates for members' total and permanent disability insurance will be streamlined.