Budget October 2022-2023

Rest working with Federal Government in the Housing Accord

The Accord is a joint commitment between the Federal Government, States, Territories, the Australian Local Government Association and other stakeholders including super funds and the representatives from the construction industry that aims to boost the supply of affordable housing.

The Accord includes a target to construct one million new, well-located homes delivered over five years from mid-2024.

Rest has been working with the Federal Government to explore ways we could potentially invest in affordable housing in Australia.

We have invested in institutional residential developments overseas since 2014. These are part of the overall investment portfolio we offer to you in Core Strategy and many of our other options.

In our experience, these assets have been valuable in enhancing the financial interests of our members.

We are interested in exploring how residential investment opportunities at scale in Australia could potentially provide similar value to our members.

We will continue to work with the Government, our industry peers and industry to explore opportunities and work through any of the barriers to investing in residential development in Australia.

In addition to the Housing Accord, our CEO Vicki Doyle will soon participate in Investor Roundtables with the Treasurer Jim Chalmers. During these roundtables, we will discuss ways to make it easier for super funds to invest in assets in national priority areas, like housing, energy transition and infrastructure, that could also provide strong returns to members. 

Downsizer contributions will be available to more people

Currently, the eligibility age for people who choose to sell their principal home to downsize and make a downsizer contribution of up to $300,000 per person is 60 years of age or older. This is in addition to the contributions caps in place.

The Government has introduced a bill that will lower the eligibility minimum age from 60 to 55. This bill is currently being considered by the Parliament. More details will be shared with members as it becomes available.

The Government has also introduced a bill that aims to incentivise pensioners to downsize their homes. The bill is proposing to double the asset test exemption from 12 months to 24 months, and lower the income test deeming rate on principal home sale proceeds from 2.25% pa to 0.25% pa. The bill is also currently being considered by the Parliament and more details will be shared with members as it becomes available. 

Paid Parental Leave to be extended to 26 weeks by two weeks from 2024

Rest welcomes the Government’s announcement that the Paid Parental Leave Scheme is to be extended to 26 weeks for working parents, increasing by two weeks a year from 1 July 2024 until it reaches a full 26 weeks from 1 July 2026. This announcement provides a welcome support for women and young families.

Rest will continue to advocate for Superannuation Guarantee payments to be added to the scheme. The Albanese Government has agreed that this reform is needed, however has not committed to any timeframe for implementation.

Superannuation in the National Employment Standards

The Government has expressed a commitment to including a right to superannuation in the National Employment Standards, which would give employees the power to pursue their unpaid superannuation as a workplace entitlement. However, no firm plans or dates have been announced.