How might your super be changing?
The Federal Budget 2022 has maintained the Super Guarantee’s legislated increase to 12%. From July 1st 2022, the Super Guarantee increases to 10.5%. It will increase by 0.5% on the 1st of July each year until it reaches 12% in 2025.
The Federal Budget has also maintained the 50 percent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.
The Federal Budget 2022 failed to make a number of changes that would have helped protect the best financial interests of Industry SuperFund members.
Paying Super on Parental Leave
Super will not be paid on the Commonwealth’s Parental Leave Pay scheme – leaving the average Aussie mum up to $14k worse-off in retirement.
If the government made a modest payment of super linked to the Commonwealth’s 18-week paid parental leave scheme – paid at minimum wage – a mother of two could have up to $14,000 more in her final nest egg.
Strengthening Unpaid Super Recoupment
The Australian Taxation Office has not been provided with any additional funding to fight the scourge of unpaid super meaning 1-in-3 Australian workers will continue to feel the sting of the $5 billion unpaid super scourge.
Expanding Low Income Superannuation Tax Offset
To further help women and low-income earners and make the system fairer, the government should also adjust the Low-Income Superannuation Tax Offset (LISTO) to better align with the income tax brackets.
More than 1.2 million Australians would see a boost in their super savings by increasing the LISTO to cover workers earning up to $45,000.