Federal Budget 2022-23 Highlights

Extension of pension drawdown reduction

The Government has announced it would extend the 50% reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.

The minimum drawdown requirements determine the minimum amount of a pension that a retiree must draw from their superannuation to qualify for tax concessions.

Given ongoing volatility, this change will allow retirees to avoid selling assets to satisfy the minimum drawdown requirements.

Click here for more

The Superannuation Guarantee will increase to 10.5% from 1 July 2022

The Superannuation Guarantee (SG) rate is currently 10% of your ordinary time earnings. However, from 1 July 2022, the SG rate will increase to 10.5% as planned and will continue to rise by 0.5 percentage points each year until it reaches 12% by July 2025.

In recent times, there has been debate about whether the Government should postpone or cancel the SG rate increase. Rest is pleased that the Government has decided to leave the increase in place as it will significantly benefit our members’ balances upon retirement – particularly for women, and workers in part-time and casual jobs with lower incomes.