Federal Budget 2022-23

ESSSuper - 30 Mar 2022

On 29 March 2022, the Australian Government handed down the Federal Budget for the 2022-23 financial year, with a focus on delivering cost of living relief for Australians. There were no significant changes to superannuation, but please read below for more information.

It's important to remember that these are only proposals and could change if/when legislation passes through parliament. ESSSuper is currently assessing the potential impact of these changes, which are subject to legislative endorsement.

Superannuation measures

Extension of the reduced minimum drawdown rate for Income Streams

In March 2020, the Government temporarily reduced superannuation minimum drawdown requirements for Working Income Stream and Retirement Income Stream members by 50% in response to the coronavirus pandemic.

This temporary reduction was scheduled to end on 30 June 2022, but this has been extended until 30 June 2023.

What are the minimum drawdown rates for account-based Income Streams?

The table below shows the minimum drawdown rates that applied prior to 1 July 2019 and the temporary minimum drawdown rates until 30 June 2023 for different age brackets:

 
Superannuation guarantee increase to 10.5%

Superannuation guarantee (SG) contributions will increase from 10% to 10.5% effective 1 July 2022, as scheduled.
 

Other proposed measures

The Federal Budget 2022-23 includes a range of additional measures which, may have an impact on your income and/or financial position in retirement.

One-off cost of living offset - effective date April 2022

• Eligible individuals will receive a one-off $420 cost of living tax offset.
• This measure complements the existing low and middle income tax offset (LMITO).
• When combined with the LMITO, eligible low and middle income earners will receive up to $1,500.

One-off cost of living payment – effective date April 2022

• To help Australians meet cost of living pressures, the Government is providing a one-off, income tax-exempt payment of $250.
• It's expected that more than half of those who will benefit are pensioners.
• It will be paid automatically to all eligible pensioners, welfare recipients, veterans, and eligible concession card holders in April 2022.

Enhanced paid parental leave – effective date 1 July 2022

• The Government has proposed to enhance the Paid Parental Leave scheme by rolling Dad and Partner Pay into Parental Leave Pay to create a single scheme of up to 20 weeks, fully flexible and shareable for eligible working parents.
• The Paid Parental Leave can be taken any time within two years of the birth or adoption of their child.
• The income test will also be broadened to have an additional household income eligibility test.

We're here to help

We're committed to empowering you to make informed decisions about your super.

On 18 and 19 May 2022 , we'll be running webinars designed to help you find out how the proposed Federal Budget 2022-23 changes and other recent legislation could affect your super – from the comfort of your home. Reserve your place now on our Webinars page.

We encourage you to speak to our experienced consultants for information and general advice about your super. To learn more or book a virtual appointment, please submit an online enquiry.

This article is based on information currently available about the Federal Budget 2022-23 and is subject to change. ESSSuper has made reasonable efforts to ensure the accuracy of this information but does not accept liability for acts or omissions based on its content.

Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.