24 June 2022
News from the last few months includes the legislated super guarantee increase to 10.5%, which takes effect from 1 July 2022. You’ll find more information on this and other updates below.
Super legislation changes and updates
SG rate to change
Effective 1 July 2022
The legislated super guarantee increase to 10.5% will start on 1 July 2022. From then, the rate will increase by half a percent each year until it reaches 12% in July 2025. As Australians live longer and population growth slows, there’ll be fewer working people paying taxes, so an increase in the SG will take pressure off the broader government budget and the overall economy. Over time, this increase will positively impact the retirement outcomes of many Australians.
Changes to Australia’s super system
Your Future, Your Super reforms are now law. These changes include:
- the introduction of a new super comparison tool,
- an annual performance test for super funds,
- stronger requirements for trustees to act in the best financial interests of members, and
- super stapling, where a single super account will follow an employee from job to job.
Your Super, Your Choice
Employees hired under workplace determinations and enterprise agreements made on or after 1 January 2021 (previously 1 July 2020) can now choose their own super fund for employer contributions under the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019. Choice of fund helps employees avoid multiple superannuation accounts and extra admin costs. As an employer, you can still provide a default fund for new starters who may not have a super fund or those who don’t make a choice. If you find you’re paying contributions into multiple accounts you may like to consider using the QuickSuper* clearing house, which is free for employers and lets you make one super payment for all employees, no matter which super fund they belong to.
Changes affecting members from 1 July 2022
The maximum super contribution base for 2022–23 is $60,220 and is used to determine the maximum limit on any individual employee’s earnings base for each quarter or any financial year. Employers don’t have to provide the minimum support for the part of the employee’s earnings above this limit although you may choose to do so.
Moving to product net zero by 2050
Climate change’s impact on economies, companies and communities around the world has a flow-on effect to investments. To offset this risk of economic impact on investments, AustralianSuper has committed to achieving net zero carbon emissions in our investment portfolio by 2050. We’ll be transitioning away from high-carbon investments, like fossil fuels, toward renewable investments like wind and solar. The transition program includes a broad range of portfolio emissions reduction activities, which are conducted across 4 pillars of investment, stewardship, collaboration and advocacy, and measurement and reporting.
Support for employers in a changing environment
Visit australiansuper.com/employers/support-for-business for more information on legislative changes, improved services and government assistance for employers. There’s also a range of COVID-19 business related services available, including FAQs, webinars and a link to Superfriend’s mental health support guide.
AustralianSuper acts to prevent fraud
We’ve put in place measures to safeguard members’ super accounts and personal information. Identity theft involves using personal information to carry out fraudulent activity, like accessing an online account and attempting a withdrawal. Visit our Keeping your super safe page for information about important steps that can reduce the risk of identity theft. COVID-19 themed email scams and SMSs that are presently circulating may involve requests for information or offers of assistance. We’ve put together some tips on how your employees can protect themselves, what to do if they think their account is at risk and how they can register for the government’s scam alert services.
Member products and services
Study shows retirement confidence is not just about money
A new study carried out by AustralianSuper and Monash University puts into question the weight given to super balances in determining how confident people feel in the lead up to retirement.
Our experts have put together a number of 20-minute SuperTalks webinars for members to watch on demand. Topics include how to save more super, responsible investing, retirement planning, cyber security and more.
Advice options for members
AustralianSuper has a number of options to help members find financial advice that’s right for them. Members can obtain advice about their AustralianSuper accounts over the phone or for more comprehensive advice meet with a qualified financial adviser face-to-face or via secure video link from home (depending on state).
Important changes to insurance
On 29 May 2021, AustralianSuper is making some changes to our insurance offering that reflect findings of a comprehensive review of claim rates, costs and prevailing economic conditions. As a result of this review, the cost of TPD and Income Protection is increasing for most members, while the cost of Death cover is decreasing for most members. We’re also renaming two of our work ratings and making changes to some terms and conditions.