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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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This content is intended to inform clients of Mercer’s views on particular issues. It is not intended to be provided to any person as a retail client and should not be relied upon or used as a substitute for professional advice specific to a client’s individual circumstances. Whilst Mercer believes the prospective information and forward looking statements made by Mercer in this report are based on reasonable grounds, they are predictive in character and may therefore be affected by inaccurate assumptions or by known or unknown risks and uncertainties. This content has been prepared by Mercer Consulting (Australia) Pty Ltd (MCAPL) ABN 55 153 168 140, Australian Financial Services Licence #411770. Any advice contained in this content is of a general nature only and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this content you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering and seek advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. ‘MERCER’ is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
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