The Federal Government’s recent budget included some minor announcements about super (which are outlined below), with the main focus being on measures to ease the rising cost of living pressures being felt across the nation. Some of the main highlights include:

• Electricity bill relief for eligible households;
• Increasing Jobseeker, Austudy and Youth Allowance payments along with extending the eligibility for the higher rate of payment to single Australians aged 55 and over who have been on the payment for at least nine months;
• Rent assistance measures which are expected to support around 1.1million households;
• 15% wage increase for frontline aged care staff;
• Expansion of Digital ID service to increase efficiency and consumer protection, reduce fraud and make it easier for people to access services online;
• Expansion of the eligibility for the parenting payment to single principal carers as well as raising the age of the youngest dependent child from eight to 14. These measures are expected to support around 57,000 families.
• Extending the existing one-off credit of $4,000 to the Work Bonus income bank measure to 31 December 2023. This measure is aimed at providing Aged and Veterans pensions with a one-off credit in the 2022–23 financial year from $7,800 to $11,800, before their pension is reduced. This means pensioners who want to work (or already work more) can do so without losing their pension.

On the superannuation front, two key measures were announced however, these are yet to be passed into legislation. For more information, read on.

1. Super paid on payday

Employers will be required to pay Super Guarantee (SG) contributions to workers’ super funds on their payday. Currently, employers must pay super at least every quarter. To support the implementation of this measure, additional funding will be given to the Australian Taxation Office (ATO) to help it detect unpaid super payments earlier, and the Government will set enhanced targets for the ATO for the recovery of payments. Overall, this measure looks to increase the visibility of super contribution payments made by employers to individual’s super accounts.

• Proposed effective date of change: 1 July 2026

2. Targeted tax concessions for super balances over $3 million

This measure will look to increase the concessional tax rate applied to earnings on superannuation balances over $3 million. From 2025, earnings relating to the portion of a member’s balance over $3 million will be taxed at 30% while earnings relating to assets below the $3 million threshold will continue to be taxed at 15%. It is expected this will affect around 80,000 Australians. IMPORTANT: Earnings within pension and defined benefit accounts are not affected by this proposed change and will remain at zero percent.

• Proposed effective date of change: 1 July 2025

More information

For more information about the full range of budget announcements, see the Budget 2023-24 website.

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.