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Proposed changes

How might your super be changing?

These changes were proposed in the May 2024 Federal Budget.  

Superannuation on Paid Parental Leave

In March 2024 the Government announced measures to make superannuation payable on the Commonwealth’s Parental Leave Pay scheme to help close the gender super gap. These measures were included in the May 2024 Federal Budget, operate from 1 July 2024 and are expected to benefit approximately 180,000 parents each year and increase the superannuation balances of women in retirement significantly.

Maintaining the increase to the super guarantee

The May 2024 Federal Budget maintained the Super Guarantee's legislated increase to 12%. From 1 July 2024 the Super Guarantee will increase to 11.5%. It will then increase by a further 0.5% on 1 July 2025 to reach 12%.

These small increases to the Super Guarantee could make a big difference to super member balances in the long term due to the magic of compound interest.

The following changes were proposed in previous federal budgets but have not yet been legislated.

Requiring super to be paid with salary and wages to tackle unpaid super

From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. This change will help address the $5 billion a year scourge of unpaid super by making it easier for workers to keep track of payments and for the Australian Taxation Office (ATO) to monitor compliance. It will also reduce the risk of businesses building up large super contribution liabilities at the end of each quarter. This move will also lead to higher returns for more than 4 million Australians currently receiving their super quarterly, as super paid more frequently compounds faster.

The 2024 budget provided $60 million to support employers to implement payday super contributions.

Concessional tax rate changes for balances over $3 million

From 1 July 2025, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent, instead of 15 per cent. This adjustment will affect around 80,000 people in 2025/26.

Deeming Rate Freeze extended

The existing freeze on deeming rates at 2.25 per cent has been extended until 30 June 2025. This measure provides relief to retirees and enables retirees to benefit from increases in interest rates without impacting on age pension rates or eligibility.

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