The 2022/2023 Federal Budget focused on addressing the rising cost of living, shrinking the deficit and lowering the unemployment rate.
This year there was only one announcement related to super - the temporary reduction of pension drawdown minimums is to be extended to 30 June 2023, continuing to provide older Australians with more flexibility in their retirement.
It’s important to note that this year is an election year, and this proposed Budget was put forward by the Liberal Government. Should another party win the upcoming election, they may make changes. If this occurs we’ll provide you with any relevant super updates.
Changes from 1 July 2022
In last year’s Federal Budget a number of changes were announced that have since been legislated and are due to come into effect from 1 July 2022. These changes include:
Superannuation Guarantee increase
Australians are being set up to retire with more money as the compulsory Superannuation Guarantee rate will rise from 10% to 10.5%.
Increased flexibility for older Australians
Increased flexibility for older Australians by removing the requirement to fulfil a work test prior to contributing, as well as lowering the age at which a downsizer contribution can be made.
First Home Super Saver Scheme increase
Young Australians are provided an even greater opportunity to enter the property market with the amount they can withdraw under the First Home Super Saver Scheme increasing from $30,000 to $50,000.