Superannuation is often a key factor in the retirement and re-employment decisions of mature age workers. Recent changes in superannuation laws allowing staff to receive their superannuation as they work have increased the options available to managers and mature age workers.
A more flexible and adaptable retirement system
There are now new rules on superannuation, making it easier for mature aged workers to stay in the workforce. Here are some key changes:
Superannuation: what changed on 1 July 2007
- Australians aged 60 and over who have already paid tax on their superannuation contributions and earnings do not need to pay tax on their superannuation benefits.
- The ability to make deductible superannuation contributions will be extended to the age of 75.
- An individual will not have to draw down their superannuation once they reach a particular age, but rather will be free to draw on it as and when they wish.
- If a person chooses to tap into their superannuation, they will be able to take out as much as they like when they like, provided a minimum amount is taken each year.
- Superannuation paid from a taxed fund either as a lump sum or pension will be tax-free when paid to people aged 60 and over.
- Employers will be able to claim a full deduction for all superannuation paid to individuals under the age of 75. The Superannuation Guarantee will continue to apply only until the age of 70.
Superannuation: what has not changed
- The employers' Superannuation Guarantee.
- Superannuation preservation rules will not change. In other words, if an individual reaches preservation age (currently 55), they will still be able to access their superannuation before the age of 60, although their benefits will be taxed (broadly in the same manner as they are now but under some simplified rules).
- The rules for when individuals can voluntarily choose to access their superannuation will not change — that is, individuals will still be able to access their superannuation once they have reached preservation age and they have retired, or from the age of 65 even if they have not retired.
- Superannuation pensions will continue to receive favourable tax treatment, however, the rules defining a pension will be greatly simplified.
Read more: The new simpler super plan 
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What is the Superannuation Guarantee?
The Superannuation Guarantee requires employers to pay compulsory superannuation contributions into a complying superannuation fund or retirement savings account for their eligible employees.
Eligible employees may include salary or wage earners, people who are engaged under a contract, and employees who are receiving a pension or annuity while still working, as in the case of some mature age workers. Non-compliance by employers will result in liability for the Superannuation Guarantee Charge.
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What are my superannuation obligations as an employer?
- Contributing a minimum of nine per cent of every eligible employee’s salary to a complying superannuation fund or retirement savings account. (Nine per cent is the minimum amount required to be contributed by law however employers can contribute more than this amount for their workers if desired.)
- Submitting these contributions by a quarterly cut off date (at least four times a year). Penalties apply for non-compliance. Superannuation contributions need to be made by 30 June to claim a tax deduction for that financial year.
- Complying with any relevant industrial awards obligations.
- Offering a choice of superannuation funds to employees.
Employers may receive a tax deduction for contributions made for employees who are over 70 years of age if the superannuation fund is eligible and:
- the contribution is made as a result of an industrial award obligation, or
- the contribution is made no later than 28 days after the end of the month that the employee turns 70.
Read more: Employer superannuation guarantee obligations
To learn more about your employees' choice of superannuation fund and your obligations as an employer, go to Super Choice
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