Navigating our path to recovery
Treasurer Josh Frydenberg has handed down the 2021-22 budget, find out Mercer’s perspective on what this means for Australia across investments, superannuation and retirement, aged care, employment and health.
This budget seeks to achieve several goals simultaneously including helping the economy continue to recover from the COVID-19 pandemic; responding to the findings of the aged care royal commission; announcing several policies that primarily benefit women; as well as laying the groundwork for the next federal election. In brief, there is no shortage of spending.
Of course, this budget is in the context of record iron ore prices and a quicker economic recovery than expected. Hence, even with all this spending, the deficit is not as large as was expected even six months ago.
In respect of Australia’s retirement income system, there were no direct responses to the recent Retirement Income Review. Instead, the planned increase in the Superannuation Guarantee (SG) to 10% from 1 July 2021 will occur, and the long-standing $450 per month earnings threshold for the SG will be removed, along with smaller improvements largely directed at older Australians.
Superannuation and retirement changes
Personal tax changes
Aged care initiatives
Additional funding of $17.7 billion allocated over five years in response to the final recommendations by the Royal Commission into Aged Care Quality and Safety, consisting of:
To learn how Mercer can assist your organisation with the outcomes from the 2021 Federal Budget speak with a specialist Mercer consultant today.
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