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Super increases: $233 boost for millions of Australians from today

·2-min read
Pedestrians in Sydney, close up of hands holding wallet full of cash.
The amount Australians are paid in super will increase from today. (Images: Getty).

The average Australian worker will see an extra $233 flow into their superannuation accounts from today as the amount employers are required to pay increases.

The superannuation guarantee has increased from 9.5 per cent to 10 per cent as of the new financial year, and it’s expected to increase retirement balances by $19,000, according to Industry Super Analysis.

“Even though the increases are only small now, they’ll add up to make a huge positive difference for millions of Australians when they retire,” Industry Super Australia chief executive Bernie Dean said on Thursday.

“These increases will give women more financial independence and that means a better shot at a dignified life in retirement, not one marked by poverty.”

He said young Australians will be the biggest beneficiaries, while the increase in super will also support those who raided their superannuation in 2020.

“This is the first of a number of increases the government has promised and locked in law for the coming few years.”

Workers in the Northern Territory will receive the biggest benefit this year, with their super balances to receive an extra $256 on average.

That’s followed by those in NSW, who will receive an extra $246 in contributions and those in Western Australia who will receive an extra $244.

Chart showing state by state breakdown of superannuation guarantee increase.
Source: ISA analysis of 2018-19 2% tax file.

Industry Super said that all up, more than 6.7 million workers will benefit from the boost, with low- to middle-income and younger workers to see the greatest benefit.

Around 50 per cent of the payments will flow to those younger than 40, or around $784 million.

However, the increase to 10 per cent is only the first scheduled increase, with the superannuation guarantee to increase to 12 per cent by 2025.

That means the average worker will have an extra $85,000 in super by retirement, and the average 30-year-old couple will be $170,000 richer by retirement.

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Image: Yahoo Finance
Image: Yahoo Finance
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