Date posted: 25/09/2020 2 min read

Budget 2020 - a big year for superannuation and retirement

There are several big ticket items for superannuation this year, but there are several other major factors surely weighing on the Federal budget this year

In Brief

  • Other important areas will dominate the Federal budget
  • Super changes may be more numerous than expected

In all likelihood other major factors will dominate Federal Budget coverage in 2020.  For example:

  • The size of the deficits in the forward estimates including their cumulative totals
  • Bring forward of personal tax cuts
  • Future of JobSeeker and JobKeeper
  • Policies to encourage productivity increases such as infrastructure spending
  • Policies to encourage businesses to retain current employees and put on more staff

These are all necessary items that will gain much attention.

But super never escapes some adjustments.  Hopefully nothing too radical like 2006.  It was a year in which super was not to feature much if at all and we found ourselves with Costello’s Better Super policy!

The big ticket items for super are as follows:

  • The future of the Super Guarantee – will the next 0.5% increase go ahead as planned or be delayed?  Will that next increase be the last?  Will higher income earners be exempt from the SG on the basis that they can look after themselves and will more lower income earners also be made exempt?
  • What will the government’s default fund policy be?  Will it follow the Hayne Royal Commission and Productivity Commission (PC) of a default fund for life and will it opt for PC’s top ten system?
  • Will it seek to have a majority of independent directors on an APRA regulated fund’s board?
  • Will it put in place an independent super fund disclosure and comparison tool so that consumers have a source of truth to assess the suitability of funds for themselves 
  • Will lifetime contribution caps be introduced thereby doing away with the costly annual caps?
  • Will Binding Death Benefit Nominations be reformed?

We will all soon see what super changes are in this year’s budget.

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