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  • Super boosterGetting the most from your super means understanding how it works and knowing how to choose the right fund. Super Booster brings both these crucial areas together in one place – designed to help everyday Australians unlock smarter saving, strategic investing, and more confident decision-making.
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  • Retirement plannerPlanning for retirement can seem daunting but putting it off can cost you a personally fulfilling, financially secure retirement. Superguide’s range of retirement planning resources helps you to understand the key issues and provide you with valuable guidance on strategies that can improve your retirement income, including case studies. It’s never too early to start preparing for a stage of your life that could last more than three decades – a long time to regret missed opportunities. You may like to begin using the seven easy steps in how to plan for your retirement which include imagining what your dream retirement looks like and thinking about how long it may last, what it will cost, whether your savings are on track, and what you can do to close the gap. And if you need a little help tailoring strategies to your circumstances, take a look at our guide to seeking financial advice.
    • Getting startedIn this section you can learn about the fundamentals of planning for your retirement. Whether you are an absolute beginner or want to refresh your understanding of the key concepts, you can discover articles that will help you understand better how to plan for retirement and what you need to consider.
    • Retirement planning strategiesIn this section you can learn about the most critical retirement strategies you should consider when planning your retirement. There are tips and strategies to suit a range of age groups, whether you have many years left to save or need to get ready to retire in a hurry, including approaches that can help make your savings last the distance. You’ll also find planning ideas if you’re thinking of retiring overseas or own a business.
    • Case studiesHere you can find worked examples of retirement plans for a range of circumstances. These will help you see how different strategies can apply in the real world. There are also reflections from current retirees who share their lived experience and what they might have done differently.
    • CalculatorsIn this section you can discover some of the calculators and reckoners that SuperGuide have developed to make superannuation and retirement planning easier to understand. We also show you how to use some of the other retirement calculators available, review how reliable they are, and give you tips on how to choose one the right one for you. See also SuperGuide’s Investment Performance Reckoners.
    • Seeking financial adviceAustralians are generally reluctant to seek professional financial advice, despite the financial landscape (including the retirement system) becoming increasingly complex. The right financial advice can help you to get the most out of your superannuation. Advice doesn’t have to be expensive, particularly if you have simple needs. Your super fund may even be able to offer you the help you require. It’s important to know whether any financial advice you receive is independent or not. Advisers are legally required to provide you with a financial services guide that will let you know this information. Independent financial advice can be broadly defined as advice that is impartial or unbiased. It is provided without any potential for a conflict of interest. The resources here explain the value of advice, how to access it, and what to avoid.
    • Preparing for retirementIt’s nearly time! After years of saving and (hopefully) planning, retirement is just around the corner. Here you can find strategies that could help you to give your super a last-minute boost and insight into the risks that could throw your plans off the rails – and what to do about them.
  • RetireeRetirement is meant to be a reward for hard work, a time to kick back and do a bit of what you fancy. It’s all that, but it is also a time when many decisions and choices need to be made. SuperGuide’s retirement articles cover everything from taking your super as a lump sum or an income stream (also called a super pension) to what happens to your super when you die. We even have a handy calculator to help you estimate how long you can expect to live. Along the way, we also examine working in retirement, a guide to the Age Pension eligibility and payment rates and eligibility for concession cards for seniors and pensioners. And if the very thought of all these decisions makes your head spin, we have a guide to seeking independent financial advice. Set out below are the key topics in retirement: Super lump sums Super pensions Age Pension Working in retirement Life in retirement Seniors concessions and services Aged care Estate planning Super death benefits As a first step, the following are key articles that tackle the big issues in retirement.
    • Accessing superConverting your superannuation to a pension is an option if you have reached your preservation age and met a condition of release. Your preservation age is between 55 and 60, depending on your date of birth. Standard conditions of release for super pension withdrawals are: retirement, beginning a transition-to-retirement income stream, ceasing an employment arrangement after the age of 60, even if you get a job with a new employer, turning 65 years of age, becoming permanently incapacitated, being diagnosed with a terminal medical condition. Your dependants can also be entitled to access your super as a pension when you die if you have arranged for this to happen, though there are likely to be tax implications. There are six main types of super pension: Account-based pension: This is the most common type of pension. The pension is paid from a super account held in your name. Annuities: Annuity payments are purchased with a lump sum and enable fixed payments for the remainder of your life or for a defined period. The value of account-based pensions on the other hand can rise or fall depending on the market value of the underlying investments supporting them. Transition-to-retirement pension (TTR or TRIS):…
    • Managing super in retirementManaging your retirement income is about more than just drawing a regular pension payment. It involves deciding how and when to access your super, understanding how long your savings might need to last, and weighing up whether to use lump sums, annuities, or other income sources outside super. The right strategy can help reduce tax, improve Centrelink outcomes, and give you more flexibility and peace of mind
    • Age Pension and seniors concessionsThe Age Pension eligibility age in Australia is currently 66 years and 6 months, increasing to 67 from 1 July 2023. In addition to the age requirement, your eligibility for the Age Pension depends on you: Being able to satisfy the Age Pension assets test, Being able to satisfy the Age Pension income test, and Meeting Australian residency requirements. You will be eligible to receive either a full or part Age Pension provided your assets or income don’t exceed the thresholds of the respective tests, and you also satisfy both the age and Australian residency requirements. It’s important to understand that your super may be included in both your asset and income tests, and can therefore affect your potential Age Pension eligibility. It’s possible to earn up to earn up to $300 per fortnight from paid employment without this amount being included in your Age Pension income test. This is known as the work bonus. Age Pension rates for singles and couples (married or de facto) are adjusted very six months based on changes in the Consumer Price Index (CPI), Male Total Average Weekly Earnings, and the Pensioner and Beneficiary Living Cost Index. See also our seniors concessions and services…
    • Other income in retirementRetirement is a condition of release to access your super once you have reached your preservation age. Your preservation age is between 55 and 60, depending on your date of birth. Once you have made a written declaration to your super fund that you are officially retired, the contributions you can make into your super account are much more limited and depend on your age. However, it’s possible to return to work even if retirement was your condition of release. If you’re aged under 60, you can return to work provided you can prove that your intention to retire was genuine when you made it. For example, your personal circumstances may have changed since you retired. You may need to provide proof of these changed circumstances to the ATO or your super fund. However you won’t be able to access any further super benefits that you accumulate from that point in time until you meet another condition of release. You can still access what you had accumulated up to that date. A transition-to-retirement pension is also an option you can consider once you have reached preservation age. If you’re aged between 60 and 64 and retirement was your condition of…
    • Life in retirementAdvice about retirement planning is often reduced to financial targets and your superannuation account balance. And that’s a pity. While a degree of financial security is necessary to live well in retirement, it’s not sufficient. Retirees and experts alike point to the importance of your health, relationships, social connection and the pursuit of new skills and interests for a sense of wellbeing in retirement.
    • Later life planningLater life planning brings together two often overlooked but essential parts of retirement: aged care and estate planning. It covers how you want to be cared for if you’re unable to make decisions for yourself, and how your assets should be managed and distributed after your death.
  • SMSFsAs if superannuation wasn’t complex enough, when you have a self-managed superannuation fund (SMSF) you take on considerably more responsibility, and it’s essential therefore to have a comprehensive understanding of the current super and SMSF rules. In this section you will find detailed explanations of the SMSF rules and the responsibilities for SMSF trustees. SMSFs for beginners SMSF administration SMSF checklists SMSF compliance SMSF investment SMSF pensions SMSF strategies SMSF Q & As As a first step, the following are key articles that describe how SMSFs work.
    • SMSF for beginnersIn this section you will gain an understanding of the basics of self-managed superannuation funds (SMSFs). We’ll take you through the key responsibilities in being a SMSF trustee, help you to evaluate if a SMSF is right for you, and give you an idea of how much it might cost to run a SMSF. You can also test your understanding of SMSF basics with our quiz.
    • SMSF admin and complianceAll Self-Managed Superannuation Funds (SMSFs) must have a trust deed, a document which sets out the governing rules of that particular SMSF. Trust deeds can vary from document to document, and can also be amended over time, so it is vital that you understand and abide by the rules governing your SMSF. In addition to the trust deed, SMSFs are subject to the provision of the Superannuation Industry (Supervision) Act 1993, which imposes legal obligations on how SMSFs must be operated. These laws and regulations may, in certain circumstances, take precedence over your trust deed, so a sound understanding of the rules is a prerequisite for any SMSF trustee. In this section you’ll learn how to comply with obligations such as: residency requirements, developing an investment strategy and ensuring that all investment decisions are consistent with it, considering member insurance needs, only accepting contributions from fund members, making super benefit payments only to members who have met a condition of release, monitoring total super balance and transfer caps, administration, reporting and record-keeping requirements, appointing a registered auditor, and lodging the fund’s annual return to the Australian Taxation Office (ATO) and paying tax, to name but a few compliance and administrative…
    • SMSF investingPeople who run their own self-managed super fund (SMSF) often do so because of the control it gives them over their investments and investment strategy. With that control comes lot of responsibility. You need to understand the nature of the investments on offer, and how they fit into your overall investment strategy. It can also be instructive to see what other SMSFs are investing in. Then there is the legal requirement for SMSFs to have a documented investment strategy. This should satisfy the sole purpose test and be used to guide trustee decision-making. See also superannuation investment strategies and our section on risk.
    • SMSF pensions and lump sumsSelf-managed superannuation funds (SMSFs) can pay whatever benefits are allowable by their governing rules (trust deed). Most typically, this allows SMSFs to pay benefits as either lump sums or pensions. In addition to the different types of payments that a SMSF can make, in this section you will learn about the process of starting a pension, transitioning from the accumulation phase into the pension phase, and all the steps that are required as a SMSF trustee to commence a pension. You will learn all about the importance of exempt current pension income (ECPI) and how to ensure that you maximise this valuable benefit. You may also need to be aware of the transfer balance cap, and how to navigate these complex rules. For those who have reached preservation age and would like to commence a pension while still retaining a connection to the workforce, a Transition-to-retirement (TTR) pension might be worth considering.
    • SMSF estate planningSelf-managed superannuation funds (SMSFs) allow for a high level of flexibility in the management of a person’s superannuation benefits upon passing. Careful planning can allow your SMSF benefits (which are not automatically estate assets) to be passed onto those dependants who you wish to benefit, in the most efficient and tax effective way possible. In this section you will learn the key concepts behind robust estate planning for SMSF trustees, and how to take advantage of the greater control accorded to SMSFs in passing on wealth from an SMSF.
    • SMSF strategies and checklistsIn this section you can learn about tips and strategies you can consider for your SMSF, including multigenerational SMSFs, how to make decisions at different life stages and what are your options when you would like to wind up your SMSF. Also covered are investing strategies such as assessing passive vs active strategies, rebalancing and which assets are popular with SMSFs.
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2022 Federal Budget newsletter

Josh Frydenberg delivered his fourth federal budget on 29 March 2022. The budget is normally delivered in early May but was brought forward this year due to the upcoming federal election.

The following announcements affect superannuation, tax and retirees.

SUPERANNUATION ANNOUNCEMENTS

Extension of minimum pension drawdown rate reductions

When you retire and start living off your superannuation savings in a super pension or annuity, a minimum amount must be withdrawn each financial year. The payment rate is a percentage of your account balance and depends on your age, as shown in the table below.

At the start of the pandemic the federal government halved the minimum pension drawdown rates for the 2019–20, 2020–21 and 2021–22 financial years and these reduced rates will now be extended for the 2022–23 financial year. This extension had already been announced by Josh Frydenberg on 25 March.

Age of beneficiaryTemporary percentage factor
(2019–20 to 2022–23)
Normal percentage factor
(2013–14 to 2018–19)
Under 652%4%
65 to 742.5%5%
75 to 793%6%
80 to 843.5%7%
85 to 894.5%9%
90 to 945.5%11%
95 or more7%14%

Source: SIS Act


Learn more about minimum pension drawdown rates.

First Home Super Saver Scheme – Increasing the maximum releasable amount to $50,000

The First Home Super Saver Scheme (FHSSS) allows super contributions to be released for a deposit on a first home. The government will increase the maximum releasable amount of voluntary concessional and non-concessional contributions under the FHSSS from $30,000 to $50,000. The new $50,000 cap would apply from 1 July 2022.

This increase had already been announced in last year’s budget but presumably it features in this year’s announcements to tie in with announcements of expansions to the Home Guarantee Scheme and HomeBuilder.

The FHSSS is designed to increase the savings first home buyers can put towards a deposit, and treasury estimates this can mean of a boost of more than 30% compared with saving through a standard deposit account.

The budget papers provide a case study illustrating how a couple could use the FHSSS.


Case study

Cathy and Anthony each earn $95,000 per year and want to buy a home. Every year they each salary sacrifice $12,500 of pre-tax income into their superannuation accounts. After four years of saving, they have $43,245 each or $86,490 combined to put towards their first home. This is $20,946 (or 30%) more than if they were using a standard savings account with 0.05% interest per year.


The budget papers also reveal that between 1 July 2018 and 28 February 2022, approximately 27,600 Australians have used the FHSSS, with approximately $382 million released. The average release amount is $13,900 and 71% of release requests were made by people aged 35 or younger.

Learn more about the First Home Super Saver Scheme.

Housing-related announcements

The government also announced an expansion of the Home Guarantee Scheme, which enables people to be approved for home loans with a 5% deposit, more than doubling the number of spaces available to 50,000 places per year. A new Regional Home Guarantee would be established from 1 October 2022, while the number of places under the Family Home Guarantee supporting single parents will double.

The 50,000 places per year would be comprised as follows:

First Home Guarantee35,000 places
Regional Home Guarantee10,000 places
Family Home Guarantee5,000 places

HomeBuilder would also receive an estimated $2.7 billion funding to support the construction of around 96,000 new homes and substantial renovations to around 22,000 homes, representing over $40 billion in residential construction activity.

TAX ANNOUNCEMENTS

One-off cost of living tax offset for 2021–22

Over 10 million Australians will receive a one-off $420 ‘cost of living tax offset’ for 2021–22, which effectively increases the maximum offset for the low and middle income tax offset (LMITO) from $1,080 to $1,500.

The table below shows the value of tax relief from the increased LMITO for the 2021–22 financial year.

Taxable incomeValue of tax reliefApproximate number of recipients
Up to $37,000Up to $6751.8 million
$37,001 to $48,000Between $675 and $1,5001.6 million
$48,001 to $90,000$1,5004.8 million
$90,001 to $125,999Between $420 and $1,5001.9 million

The LMITO will be received on assessment after individuals lodge their tax returns for the 2021–22 income year.

Learn more about LMITO.

Increasing the Medicare levy low-income thresholds

The government will increase the Medicare levy low-income thresholds for singles, families, seniors and pensioners from 1 July 2021 to take account of recent movements in the CPI so that low-income taxpayers generally continue to be exempt from paying the Medicare levy.

  • The threshold for singles will be increased from $23,226 to $23,365.
  • The family threshold will be increased from $39,167 to $39,402.
  • For single seniors and pensioners, the threshold will be increased from $36,705 to $36,925.
  • The family threshold for seniors and pensioners will be increased from $51,094 to $51,401.
  • For each dependent child or student, the family income thresholds increase by a further $3,619 instead of the previous amount of $3,597.

Learn more about income tax and the Medicare levy.

Temporary reduction in fuel excise

The government will halve the excise and excise-equivalent customs duty rate that applies to petrol and diesel from 30 March until 28 September 2022.  

This should result in a 22.1 cent drop in fuel prices and the ACCC will monitor the price behaviour of retailers to ensure that the lower excise rate is fully passed on to consumers.

ANNOUNCEMENTS AFFECTING OLDER AUSTRALIANS

One-off Cost of Living Payment to pensioners and others

The government announced a one-off, income tax-exempt payment of $250 to approximately 6 million Australians. Eligible couples will receive $500 but payments are only available to Australian residents who are eligible on 29 March 2022.

The payments will be made progressively from late April 2022 to eligible recipients of the following payments and to concession card holders:

  • Age Pension
  • Disability Support Pension
  • Parenting Payment
  • Carer Payment
  • Carer Allowance (if not in receipt of a primary income support payment)
  • Jobseeker Payment
  • Youth Allowance
  • Austudy and Abstudy Living Allowance
  • Double Orphan Pension
  • Special Benefit
  • Farm Household Allowance
  • Pensioner Concession Card (PCC) holders
  • Commonwealth Seniors Health Card holders
  • Veterans’ Affairs payment recipients and Veteran Gold card holders.

The payments are exempt from taxation and will not count as income support for the purposes of any income support payment. A person can only receive one economic support payment, even if they are eligible under two or more of the categories outlined above.

Lowering the safety net threshold for the Pharmaceutical Benefits Scheme

From 1 July 2022, the government is reducing the PBS safety net thresholds.

  • For concessional patients, the safety net threshold will be lowered by 25% from $326.40 to $244.80 – an $81.60 reduction for concessional patients. This means when a concession card holder reaches the safety net threshold, after 36 full-priced concessional scripts, they will receive PBS medicines at no charge for the rest of the year.
  • For general patients, the general safety net threshold will reduce from $1,542.10 to $1,457.10 – an $85 reduction for non-concessional patients, which means that after the equivalent of about 34 full-priced general co-payments, general patients pay only the concessional co-payment of $6.80 per PBS script for the balance of the year.

As a result, patients will reach the safety net with around 12 fewer scripts for concessional patients and two fewer scripts for general patients in a calendar year. It is estimated around 2.4 million Australians will benefit from reducing the concessional and general PBS safety net thresholds.

There would also be funding for new and amended listings to reduce out-of-pocket costs. This includes treatments for dermatitis, cystic fibrosis, spinal muscular atrophy and bowel cancer.

Increased funding for aged care

The government will provide $468.3 million over five years from 2021–22 to further implement the government’s response to the Royal Commission into Aged Care Quality and Safety, to improve transparency and regulatory standards, and continue ongoing reforms announced in the 2021–22 Budget.

The majority of the funding ($345.7 million) is allocated to improve the administration of medication management for residential aged care residents.

The budget papers mention that there are almost 218,000 people now on Home Care Packages, and another 40,000 new Home Care Packages are expected to be released over the next financial year. The waiting time for a package has reduced by 25% in the year to September 2021.

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