The levy will rise from 9% of wages, “increasing the pool of superannuation by A$85 billion over the next 10 years,” Treasurer Wayne Swan told reporters.
The first rise of 0.25 percentage points will occur on July 1, 2013, followed by another of the same size a year later, according to Bloomberg. Further increments of 0.5 percentage points will apply annually until mid-2019, when the rate will be set at 12%.
Other pension measures, including increasing the retirement age to 75 from 70 in 2013, concessions to low-income earners, and tax breaks for people near retirement age to save an extra A$50,000 a year, will cost the government A$2.4 billion over four years.
Total assets managed by Australian pension funds, unit trusts, life insurers and managed funds stood at A$1.34 trillion as of December 31, the news report said.
The compulsory superannuation regime started by the Labor party 20 years ago will be extended as part of a broader tax overhaul proposed by Treasury Secretary Ken Henry. It includes recommendations for the A$1.21-trillion economy to meet the needs of an aging and growing population.
Australia’s population will rise to 36 million by 2050 from 22 million this year and one quarter will be age 65 and over, up from 13%, according to Treasury projections.