The Federal Government has scrapped the age limit on receiving compulsory employer paid super as it tabled the Superannuation Guarantee Amandment Bill in parliament, which aims to increase compulsory employer-paid super to 12% from 9% of an employees wages.

“This bill is pressing the advantage of doing the right thing by the nation and future generations, even if vested interests and loud voices opposite yelling ‘no’ make the going all the slower, all the tougher,” Bill Shorten, Minister for Financial Services and Superannuation, said as he put the bill before the house.

He said an increase in the super guarantee to 12% was essential to ensure that Australia’s ageing population would be covered in retirement, and for this reason, he said older workers would no longer be discriminated against.

“I have decided to remove the age limit for superannuation guarantee contributions altogether,” he said in the speech. “This means that an additional 18,000 Australian aged 75 and over will get the benefit of superannuation if they continue working.”

This will commence on 1 July 2013.

Fiona Reynolds, the CEO of the Australian Institute of Superannuation Trustees (AIST) welcomed the move.

“The extra 3% super is long overdue and it will mean the difference between just getting by and enjoying retirement for millions of Australians," she said. "Fundamentally, this is about removing the worry of not having enough in retirement.”

A poll of more than 1,000 people conducted by Essential Media for AIST in late October found that 70% supported an increase in the super guarantee to 12%. Aproval among Liberal and National Party voters was at 69%, despite the Coalition opposing the increase.

“This measure recognises that we are all living longer and more people will chose to work longer as a result,” Ms Reynolds said.