The 2022-23 Federal Budget announced last night revealed there were no major changes in relation to superannuation.
The Government’s focus was on measures to address cost of living challenges in light of ongoing geopolitical and market uncertainty and to highlight a low unemployment rate coming out of the pandemic recovery settings.
For superannuation members there was only the extension of the existing reduction of 50% on minimum drawdown rates for account-based pensions until June 2023.
In addition, there were no changes to the way superannuation is taxed or any changes to the concessional or non-concessional contribution caps. There is also continued commitment to the rising of the super guarantee to 12%.
For super members/retirees:
Extension of the temporary reduction in superannuation minimum drawdown rates
The Government has extended the reduction by 50% of the superannuation minimum drawdown requirements for account-based pensions and similar products up until June 2023.
Find out more about pension payments and how to calculate payments
Start date: ongoing
Home Equity Access Scheme
The Pension Loans Scheme was renamed the Home Equity Access Scheme from 1 January 2022. This is to ensure that more people of Age Pension age can participate in the scheme. The policy therefore expands eligibility to those of Age Pension age who own a home.
Start date: 1 January 2022
Low to Middle Income Tax Offset
The Government will introduce a $420 cost of living tax offset for low- and middle-income earners for the 2021-22 tax year. This is linked to the existing tax offsets and thresholds.
Cost of living payment
The Government will provide a one-off, tax-exempt payment of $250 to eligible pensioners, welfare recipients, veterans and concession card holders. It will be paid automatically to 6 million people at a cost of $1.5 billion. More than half those who will receive this are pensioners.
Effective date: April 2022
Paid Parental Leave Scheme
The Government is introducing a single Paid Parental Leave scheme which integrates the existing Paid Parental Leave scheme with the Dad and Partner Pay. The single scheme will apply equally to family units or single parents and provides 20 weeks of paid parental leave to be used how the household sees fit. In addition, the Government is broadening the income test to include household income up to $350,000 per year. Changes also mean eligible single parents will be able to access an additional two weeks of Paid Parental Leave.
Proposed start date: 1 July 2022
What's in store for real estate?
As reported by the REIA President, Mr Hayden Groves the Budget 2022 should help constrain runaway inflation and provide the right signal for interest rates and assist challenges to housing affordability.
- The expansion of the Home Guarantee scheme, which has been doubled to provide 50,000 places to eligible first home buyers unlocking up to $30 billion in home sales
- The National Housing Finance and Investment Corporation (NHFIC) cap has been expanded by $2 billion to a combined $5.5 billion which is estimated to equate to an additional 27,000 social and affordable dwellings.
- A range of tax and training measures to support small businesses including incentives, such as a $120 tax rebate for every $100 spent training an employee and implementing digital technology
- A $17.9 billion boost to regional infrastructure, including dams, telecommunications, health and transport.
Need help?
Our friendly member services team are available on 1300 13 44 33. Contact us today.
For a full breakdown on the budget, visit www.budget.gov.au
............................................................................................................................................................
All the information on this website is published in good faith and for general information purpose only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information on our website is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of our website. From our website, you can visit other websites by following hyperlinks to these sites. While we strive to provide only links to useful and ethical websites, we have no control over the content and nature of these sites and the links to other websites do not imply a recommendation for all the content found on these sites. Please also be aware that when you leave our website, other sites may have different privacy policies and terms which are beyond our control.
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REISuper ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129. March 2022.