On 11 May 2021, the Federal Government released its 2021-22 budget, with a raft of big spending initiatives to secure economic recovery and boost employment following the pandemic. There were tax cuts for individuals and businesses, and initiatives focused on health, childcare, aged care, infrastructure, skills and women.
On the super front, there were a number of announcements, with most of these extending or building on existing measures. While it wasn’t mentioned in the budget, it’s also expected that the increase in the compulsory employer contribution
rate (also called the 'super guarantee') to 10% from 9.5% will go ahead as planned on 1 July 2021.
What these measures mean for your super
- The $450 a month salary threshold to receive compulsory super will be scrapped on 1 July 2022, meaning more workers will be paid super. This initiative will primarily benefit part-time workers and women.
- From 1 July 2022, people aged 67 to 74 will no longer need to meet a 'work test' when making or receiving before-tax and after-tax contributions. The work test required people to be employed for at least 40 hours over 30 consecutive days during a
financial year.
- Under the 'First home super saver scheme', from 1 July 2022 the maximum amount of voluntary super contributions first-home buyers can withdraw from their super will be increased to $50,000, up from $30,000. Read more.
- From 1 July 2022, retirees will now be able to top up their super with $300,000 (called the 'downsizer contribution') after downsizing their home at age 60, down from age 65.
Please note, none of these measures are yet law and will need to be legislated.
Here to help
As always, if you have any questions please call us on 13 64 63, Monday to Friday, 8am to 6pm, email
help@mine.com.au or contact your financial adviser. We can also put you in touch
with Mine Super Financial Advice to discuss your personal circumstances.