Abolishing the age limit on the superannuation guarantee will promote consistency and fairness across the board, and give mature-age workers more choice about the age at which they can retire, according to the Financial Planning Association (FPA).
The comments were made after Opposition MP Bronwyn Bishop introduced a bill to Parliament proposing the removal of the age limit, which currently stands at 70.
The Federal Government had promised to raise the limit to 75, but the Opposition is proposing to remove the age limit altogether.
FPA general manager of policy and government relations, Dante De Gori, said it was a welcome announcement that, if implemented, would remove inconsistency in the tax system that disadvantages mature-age workers.
“We should be encouraging a savings culture and providing incentives to defer the age pension by allowing individuals who are still working to receive superannuation guarantee entitlements offered to all other working Australians and to contribute to superannuation beyond the age of 75,” he said.
