A responsible budget for challenging times
Treasurer Jim Chalmers has delivered a responsible budget, consolidating on the government's ‘mini-budget’ position in October of last year. A continued focus on providing cost-of-living relief, targeted investments intended to accelerate Australia’s green energy transition, support to the aged care and health sectors, and increase defence spending are balanced by additional revenue and savings from stronger than forecast employment growth, higher corporate tax receipts and other measures.
There were no major new superannuation measures announced in the budget, but the budget did confirm the recently announced Payday Super initiative and the proposed new earnings tax on super balances over $3 million. Contrary to some speculation, there were no moves to reduce contribution caps or to stop the $200,000 indexation increase in the Transfer Balance Cap which is due to take effect from 1 July 2023.
Key measures announced
It’s important to point out that new measures announced in the May 2023 budget will need to be legislated before they come into effect. For more comprehensive information on the latest budget measures, visit budget.gov.au.
The budget in detail
To help you better understand the budget in more detail, we’ve taken an in-depth look into the key measures announced and what they might mean for you.
Amidst high inflation rates, strong labour markets and rising interest rates, the government aims to carefully deliver a budget to address cost-of-living pressures without adding to inflation. Mercer takes a detailed look at the economics and initiatives included in the budget.
Budget in 5-minutes
No major new super measures were announced in the budget. However, the super changes announced earlier this year were confirmed, in addition to a number of cost-of-living relief initiatives. Learn what they might mean for you in our easy-to-read article.
Federal Budget webinar
Mercer specialists will be hosting a complimentary post-budget webinar session on Tuesday, 16 May at 3pm (AEST), to help you make sense of what the 2023-24 federal budget measures might mean for you.
Super update: Changes coming in 2023
Several super changes announced in last year’s two Federal Budget sessions have since been legislated and are due to come into effect later this year. Here’s a round-up of those superannuation legislation changes you should know about.
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