Australians receive retirement savings boost

The Rudd government has announced it will deliver an "historic boost" to retirement savings through major reforms to superannuation banking.

Under the Stronger, Fairer Simpler: Tax Plan for our Future, the government hopes to deliver substantial improvements in retirement savings and a fairer distribution of superannuation tax concessions.

This will include a 12 per cent superannuation guarantee (SG), beginning with a 0.25 increase in 2013-14 and 2014-15, followed by 0.5 increments until the SG reaches 12 per cent by 2019-20.

In addition, from July 1st, 2012, the government will provide a contribution of up to $500 annually into the superannuation account of workers on adjusted taxable incomes of up to $37,000.

The news may interest Aussies who wish to compare term deposits in search of the best returns for their monetary assets. According to the tax plan, the measures will ensure that $85 billion is added to Australia’s pool of superannuation savings over the next 10 years.

Meanwhile, Financial Standard reported this week that stockbroker Ord Minnett’s entrance into the term deposit market has seen it raise more than $600 million in funds in the past six months.

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