MELBOURNE -(Dow Jones)- Australian Prime Minister Julia Gillard said Sunday that pension, or superannuation, funds would be able to offer lower cost products beginning July 1, 2013 if her Labor party is returned to power at the Aug. 21 election.
In a joint statement with Treasurer Wayne Swan and the Minister for Financial Services Chris Bowen, Gillard said the product, MySuper, will see fees lowered by as much as 40%, which would lift the average 30-year-old worker's retirement savings by A$40,000.
Currently, Australians pay around A$85 a month each in fees to pension funds.
The Labor government also plans to boost superannuation contributions from employers to 12% from the current 9% over coming years, partially funded through a planned new tax on the nation's booming mining industry.
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