News, insights and resources as they unfold. 
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Superannuation Policy Alert: No major changes for superannuation - Federal Budget 2022


 
The 2022-2023 Federal Budget is designed to address the rising cost of living, invest in a stronger more modern economy and re-target spending. The Federal Government made no major announcements about superannuation in its Budget.


For super members/retirees

Expanding eligibility for downsizer contributions

Key change:
  •  reducing the minimum eligibility age from 60 to 55 years of age. 
No other elements of how the scheme operates will change.
 
Proposed start date: Start of the first quarter after legislation is passed. 

Incentivising Pensioners to Downsize

Key changes:
  • Extension of the exemption of home sale proceeds from pension asset testing from 12 months to 24 months
  • Changing the income test, to apply only the lower deeming rate (0.25 per cent) to principal home sale proceeds when calculating deemed income for 24 months after the sale of the principal home. 

This will give pensioners more time to purchase, build or renovate a new home before their pension is affected.

 Start date: 1 July 2022

Incentivise pensioners into the workforce

Key points:
  • Provide age and veterans pensioners a once off credit of $4,000 to their Work Bonus income bank
  • The temporary income bank top up will increase the amount pensioners can earn in 2022–23 from $7,800 to $11,800, before their pension is reduced
Subject to age-based work tests, this measure will see more pensioners earning mandatory super, particularly since the $450 earnings threshold was removed.

Start date: 1 July 2022


 Lifting the Income Threshold for the Commonwealth Seniors Health Card

Key points:
  • Increase the income threshold for the Commonwealth Seniors Health Card:
    • from $61,284 to $90,000 for singles and
    • from $98,054 to $144,000 (combined) for couples.
  • Freeze social security deeming rates at their current levels for a further two years until 30 June 2024.
Effective date: April 2022


Paid Parental Leave Scheme

Key points:
  • From 1 July 2023 either parent will be able to claim the payment and both birth parents and non-birth parents are allowed to receive the payment if they meet the eligibility criteria.
  • Parents will also be able to claim weeks of the payment concurrently so they can take leave at the same time
  • From 1 July 2024, the Government will start expanding the scheme by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026
Payment of superannuaiton on parental leave payments continues to be absent from the scheme.

Proposed start date: 1 July 2023 for some elements, 1 July 2024 for others


Plan for Cheaper Child Care

Key points:
  • Lifting the maximum Child Care Subsidy rates for families earning less than $530,000 with children in care
  • Introducing a base entitlement to 36 hours per fortnight of subsidised early childhood education and care for families with First Nations children, regardless of activity hours or income level
The Government estimates these reforms will increase the hours worked by women with young children by up to 1.4 million hours per week in 2023–24, equivalent to 37,000 full-time workers. 

Proposed start date: 1 July 2023
 
Other Measures

Housing Accord

Bringing states and territories, the Australian Local Government Association, investors, and representatives from the construction sector together under a new national Housing Accord.

Key points:
  • Aspirational target of one million new homes under a national Housing Accord 
  • Delivered over 5 years from mid 2024
  • Government will provide $350 million over 5 years, with ongoing availability payments over the longer term, to deliver an additional 10,000 affordable dwellings
  • States and territories will also support up to an additional 10,000 affordable homes, increasing the dwellings that can be delivered under the Accord to 20,000.
The combination of a more secure pipeline of supply and Government support through innovative financing will facilitate cost-effective superannuation and institutional investment in affordable housing. The Commonwealth support will include availability payments over the longer term to facilitate institutional investment, including by superannuation funds, in affordable homes. 
  • Set up National Housing Supply and Affordability Council.


Women's Budget Statement 

As highlighted by AIST in our pre-budget submission, the Women's Budget Statement notes that 28 per cent of postmenopausal women will have moderate to severe symptoms that impacts their workforce participation.  It also notes that there are over 2.5 million employed women aged between 40 and 60, many of whom would be menopausal or perimenopausal. Approximately 80 per cent of women experience menopause symptoms.  In line with the Government's statement that it will 'Measure what matters'  AIST will continue to advocate for a comprehensive assessment of the number of women impacted and the associated economic, social and health impact so a co-ordinated plan can be developed.