How might your super be changing?
Changes announced in the 25 October 2022 budget
The Federal Budget in October 2022 maintained the Super Guarantee’s legislated increase to 12%. From July 1st 2022, the Super Guarantee increased to 10.5%. It will continue to increase by 0.5% on the 1st of July each year until it reaches 12% in 2025.
A further reduction in the age limit for downsizer contributions into superannuation from 60 to 55 years and an extension of the assets test exemption of home sale proceeds by 12 months were both proposed in this budget.
Through the landmark Housing Accord, the Federal Budget has also unlocked exciting opportunities for Industry SuperFunds to make investments in affordable housing that deliver stable long-term investment returns to millions of Australian workers whilst providing affordable shelter to thousands of Australians.
Click below to hear ISA Deputy CE Matt Linden’s insights into the October Federal Budget’s implications for Australia’s economic outlook, housing market, and superannuation sector.
Opportunities for ongoing improvement to super
While the Federal Budget October 2022 contained some new measures, the following initiatives were not contained in the budget:
Paying Super on Parental Leave
The government announced changes to extend the Commonwealth Parental Leave Scheme from 18 to 26 weeks, with some added flexibility to encourage both parents to benefit from the scheme. An extra fortnight will be added to the scheme each year until the full 26 weeks is available from July 2026.
The October budget did not contain measures to make superannuation payable on the Commonwealth’s Parental Leave Pay scheme.
Fixing Unpaid Super
There were no new measures to address unpaid super which affects 1-in-4 Australian workers who collectively miss out on about $5 billion in super each year.