Federal Budget 2022/23 – October update
While the 2022/23 Federal Budget was handed down in March 2022, with the change of government following the election in May, the new Labor Government has now delivered another Federal Budget for 2022/23 (the first budget for Treasurer Jim Chalmers). This new budget comes at a time of increasing cost of living pressures and heightened global economic uncertainty.
As anticipated, this Federal Budget 2022/23 announced on Tuesday 25 October, didn’t contain any significant changes to super.
Read on to learn more about the key measures affecting super.
Super Guarantee payments remain on track to rise to 12% by 2025
In welcome news, there was no change to the legislated superannuation guarantee (SG) rise from 10.5% to 11% on 1 July 2023. If there are no future delays, the SG rate is on track to increase to 12% by 2025.
50% reduction in the minimum draw down rate remains until 30 June 2023
The 50% reduction of the minimum payment limits for pension members will continue until 30 June 2023.
The temporary minimum income limits are shown in the table below.
|Age||2022/23 minimum payment rate|
|65 to 74||2.5%|
|75 to 79||3%|
|80 to 84||3.5%|
|85 to 89||4.5%|
|90 to 94||5.5%|
|95 and over||7%|
Pension members, you can view and update your pension payment amount and frequency in MemberOnline.
Eligibility age for downsizer contributions reduced
The eligibility age for the downsizer contribution scheme will be further reduced from age 60 to age 55. This means if you’re age 55 or older, you might be able to make a downsizer contribution of up to $300,000 ($600,000 for couples) from the sale of your primary residence into your super account (if eligible). This measure will come into effect at the start of the first quarter after the legislation is passed. Read more about making a downsizer contribution.
Creating more affordable housing
The Federal Budget has taken an important step towards addressing housing affordability by announcing a scheme to encourage super funds and other institutional investors to invest in residential housing. CareSuper believes that this scheme, known as the Housing Accord, has the potential to address an economic and social imperative to benefit our community as a whole as well as our members and is committed to supporting work on developing reforms that will enable more institutional investment into affordable housing. Read more about our position on the Housing Accord proposal here.
Other key measures announced in the budget were aimed at easing cost of living pressures, reducing the gender pay gap, supporting working families, improving mental health, wellbeing and aged care.
Paid parental leave
The government has announced an extension to the Commonwealth Paid Parental Leave Scheme from 20 weeks to 26 weeks by 2026, with extra flexibility to encourage both parents to benefit from the scheme. This is a positive step that will help to bridge the gender pay gap, but the lack of funding of super on Commonwealth Parental Leave Pay continues to contribute to the gender super gap.
We're passionate about women’s financial wellbeing and we’ll continue to advocate for super to be paid on paid parental leave.
For more information and to view all the measures announced visit budget.gov.au.
Help and advice when you need
Remember, we’re always here to help. As a CareSuper member you can access financial advice over the phone as part of your membership.* Book a call with a financial planner.
* Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.