2022/23 Federal Budget
What it means for your super
The Federal Government’s October 2022 budget included no major changes for superannuation.
Described as a ‘mini-budget’ the October announcement is seen as a prelude to the May 2023 federal budget. It is framed to address a challenging time for the Australian economy with rising interest rates, inflation, and cost of living, against a backdrop of domestic hardships caused by widespread flooding in the eastern states and concerns about global economic recession.
Expanding eligibility for downsizer contributions
The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home (eligibility conditions apply).
As announced previously, the Government will allow more individuals to make downsizer contributions to their superannuation fund, by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after the legislation is finalised. and extending of the exemption of home sale proceeds from pension asset testing from 12 months to 24 months.
No Superannuation-specific changes announced
There were no changes announced to:
- Superannuation tax concessions;
- Measures to address unpaid super; and
- Funding of super on Commonwealth Paid Parental Leave.
Paid Parental Leave Scheme
From 1 July 2023 either parent will be able to claim the payment and both birth parents and non-birth parents will be able to receive the payment if they meet the eligibility criteria.
Parents will also be able to claim weeks of the payment at the same time so they can take leave concurrently.
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.
As noted above, payment of superannuation on parental leave payments remains absent from the scheme.
Other measures announced
- The Housing Accord – to create a pipeline of affordable housing;
- Plan for cheaper childcare and support for residential aged care facilities;
- Incentives for pensioners to return to the workforce; and
- Lifting 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.
Quarterly performance update - July to September 2023
Boost your super and claim a tax deduction
With cost-of-living pressures on the rise, putting money aside for retirement may not be high on your priority list. Here are some ways that could help boost your super.