What does the Government's super freeze mean?
Tags: Super, super contributions, salary sacrifice
The Government recently announced that the super guarantee will stay frozen at 9.5% for a few more years. They have reconfirmed their commitment to reach a super guarantee of 12%, but not until 2025 (under the previous Labor government, the guarantee level was set to rise to 12% by 2019).
So what does this mean for you? Put simply, you need to think about salary sacrificing and what YOU can contribute towards your super. It makes so much sense – it is tax effective, it helps grow your super more quickly, and it therefore helps you reach retirement sooner.
Read more about salary sacrificing here, or if you want to know more about the Government’s latest announcement, check out this article from The Sydney Morning Herald.
