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Groups welcome super boost

Government’s mining tax deal will benefit workers, union says

Millions more Australians will comfortably retire because of the federal government’s commitment to superannuation, an industry group says.

Compulsory increases in super payments from nine to 12 per cent of earnings will still go ahead, despite the scrapping of the mining super profits tax in favour of “the mineral resource rent tax” (MRRT).

The move was welcomed on Friday by the Investment and Financial Services Association, which represents retail superannuation funds.

“Increasing superannuation to 12 per cent will ensure millions more Australians have an adequate retirement,” said CEO John Brogden, a former NSW Liberal Party leader.

“Low income earners in particular will benefit greatly through the governments $500 contribution, effectively cutting their super contributions tax to 0 per cent.

“In essence, the value of super contributions made by low income earners will almost double.”

Brogden said being able to contribute to super up to the age of 75 was “a serious incentive for Australians” to keep working.

Elsewhere, Unions NSW secretary Mark Lennon says the increase, to take effect by 2020, is a boon for working people.

“Today’s announcement means that even more hardworking Australians can look forward to a decent retirement in the years to come,” he said.

“The pool of national savings created by compulsory superannuation has helped Australia withstand the global economic downturn and this will further reinforce that,” Lennon said.

AAP

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