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Super boost: Millions of Aussies to get extra $330 from tomorrow

The super guarantee rate will increase from 10.5 per cent to 11 per cent from July 1.

Superannuation concept. Australian money. Nest egg.
Aussie workers will receive a major boost to their superannuation tomorrow. (Source: Getty)

About 8.8 million Aussies will see a boost to their retirement nest egg when the superannuation guarantee rate increases tomorrow.

The super guarantee is the percentage of wages that employers must pay into their workers’ superannuation funds.

From July 1, the super guarantee rate will increase from 10.5 per cent to 11 per cent. It will continue to rise by 0.5 per cent on July 1 each year until it reaches 12 per cent in 2025.

The typical worker will get an extra $330 a year from tomorrow’s increase, according to calculations by Industry Super Australia. At retirement, a 30-year-old on the median wage is expected to have an extra $18,300.

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“Come July 1, the super guarantee will increase to 11 per cent, another small step on its way up to 12 per cent by 2025 that will make a huge difference when workers put their feet up at retirement,” Industry Super Australia chief executive Bernie Dean said.

“Even though the staged increases are small, they’ll add up to so much more in savings and that means a more secure future for millions of Australians.”

Overall, the rise to 12 per cent is expected to deliver the typical 30-year-old worker an extra $48,600 at retirement.

Who are the biggest winners?

Workers aged between 40 and 49 will get the biggest immediate benefit, but younger workers will get the most in the long-term.

“The big winners for the super guarantee increase are those younger workers on lower incomes, who have years left in the workforce to watch that compound interest grow,” Dean said.

More than half of the nearly 9 million workers getting the increase are under 40, with workers in their 30s being the biggest age group to get a boost.

Age

People

Average SG increase per person

20-29

2,273,300

$227

30-39

2,384,800

$359

40-49

1,816,700

$402

50-59

1,443,600

$375

60-69

747,300

$304

70+

106,600

$213

All

8,772,200

$330

Source: Industry Super Australia

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