The repeal of the mining tax has brought with it changes to how superannuation will be increased over the next seven years. How will that affect your super?
Piggy bank picture from Shutterstock
The ABC has put together a calculator that compares the way super was meant to increase to what's now going to happen under the legislation, which stops an increase that was due to kick in from July next year.
It's a relatively blunt tool that requires only your age and your expected income to come up with a figure based on Industry Super Australia modelling of the new laws and an assumed wage growth of 3 per cent per annum. As you might expect, with super effectively frozen to pay for the mining tax cut, the results are negative for overall superannuation growth.
There are some assumptions within the modelling, such as no 18-year-olds earning more than $40,000 per annum, but it's still interesting stuff for those concerned about the changes.