The 2021-22 Federal Budget focused on post-pandemic economic recovery, with job creation at the heart of many of the announced measures.
The budget’s economic forecasts confirmed that the superannuation guarantee (SG) would increase from 9.5% to 10% from 1 July 2021, as previously legislated.
This is the first of several increases scheduled to occur over the next four years, raising the SG to 12% by 2025.
The budget included some developments for superannuation and retirement-related proposals.
Proposed super reforms:
- Removal of the $450 minimum monthly income threshold for the superannuation guarantee
- First home super saver (FHSS) scheme expanded
- Downsizer contributions open to over 60s
- Work test to be abolished
Important: these budget announcements are proposals only and shouldn’t be considered final until they are passed by the Federal Parliament.