Superannuation regulatory changes with Australia's new Labor Government 

The new Labor Government will be a strong supporter of superannuation.  In fact, the Prime Minister in his election night comments mentioned his government’s support for “universal superannuation”.

 

Mercer’s Dr David Knox discusses the possible developments under the new Labor Government, together with the new changes effective 1 July 2022.

Superannuation regulatory changes from 1 July 2022

 

The following changes will occur from 1 July:

  • The Superannuation Guarantee (SG) rate will increase from 10.0% to 10.5%
  • The current $450 per month earnings threshold for the SG will be removed meaning that the SG will have to be paid for nearly all employees
  • All APRA-regulated superannuation schemes must publish their retirement income strategy as required under the new Retirement Income Covenant
  • The work test will be repealed for those aged 67-74 in respect of funds accepting voluntary employer, non-concessional and salary sacrifice contributions (the work test will still apply at these ages to claim a personal contribution tax deduction)
  • The minimum age for making Downsizer contributions will reduce from 65 to 60. Both parties pledged to reduce this to age 55 during the election campaign.

 

Possible Super developments under the Labor Government

 

Labor has indicated it recognises the extent of superannuation regulatory reforms since the Hayne Royal Commission, and that the industry has to be able to digest these reforms. As a consequence, it is not looking at a substantive overhaul of any of the recent superannuation reforms. However, as it seeks maintenance of the superannuation system, we can expect the following topics to be considered.  

 

Learn more about what the new Government means for Superannuation. 

 

Get in touch with Mercer...

Dr David Knox BA PhD FIAA
Senior Partner, Senior Actuary

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