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Potential delay for superannuation increases

Currently, there are plans to increase the level of compulsory superannuation contributions, paid by employers, from the current rate of 9.5% of salary to 12%. The increases, as currently planned, would occur in 0.5% increments over the next five years.

However, due to pressure on the budget, the government wants to delay the first 0.5% increase for three years. This is because the significant tax concessions that are offered on superannuation contributions place an additional burden on government revenues. Treasurer Joe Hockey is proposing that the increases should be introduced at the discretion of the Treasurer, without the need to consult parliament.

The new provision, which has yet to be presented to the senate, would not allow any scheduled increases to be delayed by over four years and would also not allow the Treasurer to decrease the rate of compulsory contributions.

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Pros and cons of home reversion

February 25, 2021

Super (AU): Pros and cons of home reversion

Home reversion is when you sell a share of the future value of your home whilst still living there. You receive a lump sum payment and continue to own the remaining share of your home equity.

Pros

Cons