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  • How super worksCompulsory superannuation has been around since 1992, but there is still a lot of confusion about its purpose and how it works. Our Super for beginners guide is designed to answer all the basic questions you have about superannuation. We also cover super’s rules for contributions, detail how they are taxed and when and how you can withdraw your retirement savings. Visit the sections below to learn the fundamentals about superannuation: Super for beginners Super rules Super contributions Super and tax Accessing super Super tips and strategies Super news Women and super How-to Super Guides Super quizzes Superannuation Q&As Superannuation glossary As a first step, the following are key articles that describe how super works.
    • Super rulesThis section will help you understand the fundamentals about superannuation, whether you are a complete beginner or need a refresher. You’ll find details of the rules that apply for your age group, the special tax concessions that make super attractive, and the essentials on how the super system works.
    • Contributing to superMaking super contributions is one of the simplest ways to improve your final retirement balance and reduce your tax bill. Annual contribution caps (limits) put a lid on the amount you can contribute each financial year, but can be flexible if you’re able to use the carry forward or bring forward rules. Find out all you need to know to make the most of your contributions without falling foul of the rules here.
    • Accessing superThere are multiple ways that you can legally access your superannuation. These are known as conditions of release. People most commonly think of accessing super at retirement, but there are times some or all of your super balance may be withdrawn early, such as if you develop a terminal illness or are suffering severe financial hardship. You might also choose to release some of your voluntary savings to help with the purchase of your first home.
    • Super tips and strategiesWhen it comes to making the most of your super, knowing the rules is only part of the picture. Making savvy use of those rules with the right strategies can take you to the next level. These strategies, tips, and case studies can empower you to make the right decisions and wring out the full benefit of the super system.
    • Super newsSuperannuation has become a regular part of the news coverage in recent years. This can be beneficial in that it can raise general awareness about super and remind many Australians that they should check in on their own super, and not forget to properly plan for their retirement. Often though news about super can be negative, when there are significant changes to the rules that forces people to learn the new rules and assess the implications for their existing retirement plans. A lot of angst and uncertainty can also be created when changes are only mooted – for example at election or budget time. Whatever the big issues are about super, SuperGuide will always cover them from an independent perspective, telling it like it is and never representing any particular political party or industry organisation. SuperGuide has only ever represented the best interests of everyday Australians to help you better plan for your retirement.
    • Special topicsThis section covers:  the employer’s guide to super – how to calculate and make contributions, deadlines and other obligations, tax deductions, choosing a super fund for employees, record-keeping, penalties, and checklists  gender and relationship issues – including the issues women face with super due to lower average incomes, time out of the workforce, and living longer, as well as super and divorce and rules for same-sex couples super rules and opportunities if you are self-employed
  • Super fundsFor most Australians super is likely to be their biggest investment outside the family home, so it is not something you can afford to set and forget. If you would like to know more about your super fund and how it rates against the best on offer, but don’t know where to start, we have put together a series of articles to help you do just that. We also have articles on choosing a fund or investment option, fees, insurance, investments and investing concepts to help you make the most of your super. Visit the sections below for more information on super funds: Best performing super funds Super fund rankings Best performing pension funds Pension fund rankings Super fund average returns Comparing super funds Choosing a super fund Choosing an investment option Insurance and super Super fund fees Super investing strategies Super fund profiles As a first step, the following are key articles that explore how super funds work.
    • Choosing a super fundIf you’re an employee, you’re eligible to choose the super fund that your employer pays your super guarantee (SG) into, provided you’re in one of the three categories below. You’re employed under a federal award. You’re employed under another award or workplace agreement that doesn’t require superannuation support. You’re not employed under an award or industrial agreement. This includes contractors who are primarily paid for their labour. Learn more about whether you can choose your super fund. If you are eligible to choose your super fund, there are five potential options (though not every option is available to everyone). Retail funds – These are funds run by financial institutions. They’re generally open to anyone. Industry funds – These funds are generally designed for people who work in a particular industry, but some industry funds will allow anyone to join. Public sector funds – These funds are generally only open to government employees. Corporate funds – These funds are usually only available to employees working for a specific employer. Self-managed super funds (SMSFs) – These are funds where you have more responsibility in terms of administration, compliance and investment decisions. There is a wide variety of super funds available in the…
    • Super investing strategiesIn this section you can learn more about the investing side of superannuation. This includes learning the fundamentals about how investing works within super, understanding your risk profile and the investment options available to you, and perhaps considering other investment values that are important to you. We also cover several topics that are specific to those in retirement, and those with SMSFs. Be sure to also check out our SMSF investment section. Learn more about key super investment strategies in the following SuperGuide articles:
    • Best performing super fundsBeing in a consistently high performing super fund is one of the key factors in growing your super balance over time. Members of consistently poor performers are at risk of having substantially lower super balances at retirement. The Productivity Commission review of superannuation produced an example of a 21-year-old on a $50,000 starting salary. If they joined a super fund that is consistently in the top quarter of funds rated by performance, they could expect to retire at 67 with a super balance of $1.1 million. If instead they joined one of the super funds that is consistently in the bottom quarter of funds, they would retire with $610,000 – 45% ($502,000) less. Returns are not the only measure of a good fund – fees, insurance offerings, member services and investment choice are also important. However, if your fund has a long track record of underperformance it could be time to switch to a product with a history of superior returns. When super performance tables are published in the media, generally only they only compare super investment options in a single risk category – ‘balanced’ or ‘growth’ – which generally means they have 60-80% invested in growth assets. SuperGuide publishes…
    • Best performing pension fundsAccording to the 10/30/60 Rule, 60% of your retirement income comes from the investment returns you achieve during your retirement. While this rule originated from a US study, the principle holds broadly true for Australian retirees and underlines how important it is to continue to earn a good investment return in your retirement years. During their working years, most Australians pick a balanced or growth super fund, with between 60% and 80% of their money invested in growth assets such as shares and property. However, as people near or reach retirement, capital preservation becomes an important consideration. At this age and stage of life it is generally advised to reduce the percentage of growth assets in your investment portfolio to reduce risk. This is to limit what is called sequencing risk, or the risk of a bad year early in retirement adversely impacting the total amount of income available to you over the course of your retirement. This is also the logic behind lifecycle super funds, which automatically reduce the percentage of growth assets in your account as you age. For example, lifecycle funds for people who were born in the 1990s on average have 88% of the money invested in growth…
    • Super fund profiles
  • 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 pensionsSelf-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 strategiesIn 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.
    • SMSF checklistsIn this section you will find a series of handy checklists to help make running your Self-managed superannuation fund (SMSF) a breeze. Our checklists will help you write or review the fund’s investment strategy, start a pension or just make sure you have all the important calendar dates you need to stay on top of things. You may also benefit from our how-to guides and our step-by-step guides.
    • SMSF Q&AsSuperGuide covers all aspects of SMSFs and also provides answers to common SMSF Q&As. SuperGuide Premium members can also submit questions through our Support section. Please note that we can only provide general information, and cannot provide any advice about your personal situation. See also our Superannuation Q&As section.
  • Retirement planningPlanning 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.
    • Key issues to considerWhen you’re planning your retirement there are many variables that need to be considered to ensure your foundations are solid. This section will walk you through the important aspects, including: What retirement could cost How long you might live for The importance of where you will live, and How inflation could affect your retirement income
    • 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.
  • In retirementRetirement 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.
    • Income from 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):…
    • Age PensionThe 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…
    • Work and other incomeRetirement 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…
    • Seniors concessions and servicesWhen you retire there is bound to be a tighter focus on living within your means, even if you are comfortably well off. With bills to pay and increasing health care costs for many retirees, any discounts or rebates are always welcome. And with cheap travel and bargains on products and services on offer, what’s not to love? The good news is you don’t necessarily need to be on the Age Pension to qualify for some handy concessions. You may not even have to be fully retired.
    • 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.
    • Estate planningOne of the rules of successful investing is to plan your exit well ahead of time to protect your profits. The same can be said about planning your finances for your final exit, otherwise known as estate planning. Estate planning covers how your financial assets should be distributed after your death. Because your super is not covered by your Will, careful consideration needs to be given to the nomination of beneficiaries, the tax implications, and the financial wellbeing of your spouse and other dependents after your death. Increasingly, an estate plan also details how you should be looked after later in life if you are then unable to make your own decisions.
    • Aged carePerhaps it’s because we would rather not think about it, but one of the most overlooked aspects of retirement planning is aged care. Not just the costs, although these can be significant, but decisions around where and how we want to spend our final years. Aged care encompasses home support, home care and residential care. While it’s impossible to know exactly what our care needs will be in future, it’s important to understand your options and potential costs and make your wishes known to your family. As decisions about aged care often need to be made quickly after an accident or illness, a bit of advance planning will make the process easier for all concerned.
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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.

SuperGuide is Australia’s leading superannuation and retirement planning website.

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