The 2023-24 Federal Budget announced by the Federal Treasurer, Dr Jim Chalmers, on Tuesday, 9th May, contained three announcements specifically in relation to superannuation. These include:
- Superannuation tax concessions
- Payment of super on payday
- Investing in the ATO to identify unpaid super
For super members/retirees:
Superannuation tax concessions - balances exceeding $3 million
As of 1 July 2025, there will be reduced tax concessions for individuals with more than $3 million in super. Individuals with balances over this threshold will be subject to an additional tax of 15 per cent on the earnings on any balance that exceeds this threshold. Individuals with total superannuation balances (TDB’s) over $3 million at the conclusion of the financial year, will also be subject to an additional tax of 15 per cent on earnings. This tax is in addition to any tax that an individual’s superannuation fund already pays on earnings in accumulation phase.
For employers:
Increasing the payment frequency of the Superannuation Guarantee (SG)
From 1 July 2026, the Government will introduce legislation that will require employers to pay their employee’s Superannuation Guarantee (SG) on the same day that they pay their salary and wages.
This measure is one of the most significant upgrades to the super system in the last 30 years and has the potential to add billions more to the retirement savings of millions of Australian workers.*
The policy might mean $50,000 more at retirement for many young workers. Additionally, 8.9 million Australians will receive their super payments more regularly, which could result in thousands of dollars more in earnings over the course of their working lives as more frequent payments attract compound interest for longer.*
Effective: 1 July 2026
Investing in SG compliance to identify unpaid super
The Government has committed to investing $27 million in the ATO to help identify and act on SG underpayments by employers.
The Government will also invest a further $13.2 million in a new ATO compliance system that will identify over or underpayment of super in near real-time.
Effective: 1 July 2026
Sources:
- Australian Institute of Superannuation Trustees (AIST) 2023 Federal Budget summary
- The Association of Superannuation Funds of Australia (ASFA) Federal Budget 2023/24 edition
- *Industry Super Australia Budget 2023/24 Summary - Media Releases
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