ARTICLE · 11 APRIL 2011

Government goes digging to pay for superannuation guarantee increases

Norton Rose Fulbright Australia

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It has recently been announced that a large part of the increased revenue expected to be obtained from the proposed Mineral Resource Rent Tax is to be directed towards an increase in the superannuation guarantee levy.

AustraliaTax

Scott Charaneka

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It has recently been announced that a large part of the increased revenue expected to be obtained from the proposed Mineral Resource Rent Tax is to be directed towards an increase in the superannuation guarantee levy.

On 24 March 2011 the Federal Government announced that all recommendations of the policy transition group headed by Minister Martin Ferguson have been accepted and the Government has gained the support of the mining industry for the proposed Mineral Resource Rent Tax.

In the subsequent press conference and later articles the Government stated that a large part of the revenue from this tax will be directed towards funding the planned superannuation changes announced in May last year; including an increase in the superannuation guarantee levy to 12% and exempting low income earners from contribution tax. The Association of Superannuation Funds of Australia in conjunction with these announcements has urged the Government to implement the planned measures

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