Just eight months on from its first ‘pandemic Budget’, the Federal Government has delivered its 2021 edition.
With a raft of significant measures around superannuation already announced last October, this year’s Budget wasn’t quite as packed with big changes, but there are still a couple of important things to be aware of.
We’ve highlighted the proposed changes we think are most relevant to our members, and explained what they might mean for you.
While it wasn’t mentioned in Treasurer Josh Frydenberg’s Budget speech, the Government has confirmed that the Superannuation Guarantee (SG) will start to increase as planned on 1 July 2021.
The SG, or the money that your employer must contribute to your super on your behalf, will rise from 9.5 to 10 percent of an employee’s ordinary time earnings this year. It will then increase by 0.5 percent each 1 July until it reaches 12 percent on 1 July 2025.
The increase is designed to ensure that our super balances keep up with the cost of living by the time current employees reach retirement, so they can enjoy a comfortable retirement.
The confirmation that the increase will kick off this 1 July follows several years of debate in the media about its necessity and, over the last year, its timing in the wake of the COVID-19 pandemic.
Originally legislated by the Gillard Government, the gradual increase was first scheduled to begin in 2015, but was put off until 2021 by the Abbott Government in 2014.
With super in the news, cyber criminals are carrying out phishing attacks and scams using a variety of different channels, such as email, phone or in person.
The government has put together a guide to help you spot a scam:
If you need help with making a decision about your super, you can get simple advice over the phone. It’s included as a part of your membership so there’s no extra cost.
