Restarting Australia’s economy
Treasurer Josh Frydenberg has handed down the 2020-21 budget, find out Mercer’s perspective on what this means for Australia across investment, superannuation and retirement, aged care, employment and health.
Given the significant economic effects of the COVID-19 pandemic, the 2020-21 Budget has a strong focus on reinvigorating the Australian economy through an emphasis on job creation with a variety of programs and the encouragement of consumer spending through tax cuts and extra support payments. Naturally, these policies lead to a significant deficit.
Notwithstanding this economic stimulus, the Budget also announced significant reforms to the Australian superannuation system. From 1 July 2021, employers will pay superannuation contributions to a new employee’s existing super fund, unless the individual chooses otherwise. The primary objective of this policy is to reduce the number of unintended multiple accounts. The government also announced the introduction of an annual performance test for superannuation products, starting with MySuper from 1 July 2021.
The following sections outline details of announcements in a range of areas together with Mercer’s perspective on the major policies.
Superannuation and retirement changes
The government has announced a number of significant reforms within its Your Future, Your Super package intended to operate from 1 July 2021 including:
Aged care initiatives
Investment implications
Workforce initiatives
Health initiatives
To learn how Mercer can assist your organisation with the outcomes from the 2020 Federal Budget speak with a specialist Mercer consultant today.
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