In his second Budget speech since Labor took over government last year, the Treasurer highlighted issues facing Australians including inflation, rising energy costs and rising rents and mortgages.
“Our Government is building a stronger economy and a fairer society. With greater security in a time of economic uncertainty. More opportunities in more parts of our country. And a renewed determination for Australia to make the most of the defining decade ahead.”
He had previously stated that this Budget would seek to find a way to deliver cost of living measures without impacting inflation.
One widely-anticipated move had been the move to increase the tax rate for people with more than $3 million in their super fund which would kick in from 1 July 2025.
Under the measures, the headline tax rate for super balances exceeding $3 million would rise from 15 per cent to 30 per cent and was expected to raise $900 million over the next four years and $3.2 billion over the next five years.
It had been flagged in February by Prime Minister Anthony Albanese and gone through a period of consultation which opened at the end of March.
He also confirmed the introduction of payday super, which had been welcomed by super organisations. This would require businesses to pay super to their employees at the same time that they pay salary or wages, starting from 1 July 2026.
Reacting to the news last week, super organisations described the measure as a “big win” for younger workers, casual workers, lower-paid staff and women.
A super issue that was ignored was the inclusion of super on Paid Parental Leave despite having been pushed for by super organisations and raised as a potential issue by Minister for Financial Services, Stephen Jones, after the October 2022 budget.
Moving beyond super, the Treasurer unveiled a $14.6 billion cost-of-living plan which he said would provide help with power bills, bring down out of pocket health costs, support vulnerable Australians, create more affordable housing and boost wages.
This included up to $3 billion in direct energy bill relief where more than five million households would have $500 deducted from their power bills in the next financial year.
There would be a new tax break for build-to-rent projects which could half the managed investment trust withholding tax from 30 to 15 per cent and the liability cap of the National Housing Finance and Investment Corporation would be increased by $2 billion.
Implementation of the $10 billion Housing Australia Future Fund was “critical”, Chalmers said, in order to build more social and affordable housing.
Why does it not start until July 2026? The technology to do this very simple and has been around for years. Start it this year if it is so important. And why does the comment by “super organisations” have to bring gender into this, whether you get paid super and the timing of it is not based upon what sex you identify as.