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Home News & Insights Budget 2022/23

Budget 2022/23

legalsuper 04 Apr 2022
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There were no major announcements about super in this budget.

The 2022/23 federal budget is framed to address the rising cost of living and draw attention to an expected reduction in the budget deficit and a low unemployment rate coming out of the pandemic.

Extension of temporary reduction in superannuation minimum drawdown rates

The Government has announced an extension to the 50% temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2023. The minimum drawdown requirements determine the minimum amount of a pension that a retiree must draw from their superannuation to qualify for tax concessions.

Superannuation guarantee

There were no changes to the legislated rates of superannuation guarantee. The rate for 2021/22 is 10% and will increase by 0.5% each year, reaching 12% for 2025/26 and beyond.

Home Equity Access Scheme

The Pension Loans Scheme was renamed the Home Equity Access Scheme from 1 January 2022. It means more people of Age Pension age can participate in the scheme thereby extending eligibility to those of Age Pension age who own a home.

Enhanced paid parental leave

While not committing to paying super on the Commonwealth parental leave pay scheme, the Government announced changes to expand and combine the scheme to broaden eligibility and provide more flexibility for families.

The changes will integrate Dad and Partner Pay and Parental Leave Pay (PPL) to provide eligible families access to up to 20 weeks leave to use in ways that suit their specific circumstances.

The income test is being broadened to include a household income threshold of $350,000 per year. This will mostly support higher earning women who are the primary earner and do not currently have access to employer-funded parental leave.

Changes to PPL are to be introduced no later than 1 March 2023 following stakeholder consultations.

What was not addressed?

No substantive measures or policies were announced to address the superannuation gap experienced by women or the gender pay gap.

There were also no changes to the way super is taxed or to concessional or non-concessional contribution caps.

There were also no additional measures to address unpaid super.

Issued 31/3/22. Legal Super Pty Ltd. ABN 37 004 455 789, AFSL 246315, as Trustee of legalsuper ABN 60 346 078 879, Goldfields House, Level 9, 627 Chapel Street, South Yarra VIC 3141.

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