On Tuesday 6 October 2020, the government released the Australian Federal Budget for 2020-21.

The focus of this Budget is on economic recovery, including tax cuts, wage subsidies and other measures to drive business investment. In relation to super, there were a number of announcements, including:

  • Super fund accounts will follow members to a new job, unless they choose otherwise, reducing the chance of people having multiple super accounts.
  • MySuper products, which are simple and cost-effective superannuation products that were introduced in 2013 to replace the previous default fund system, will be subject to an annual performance test.
  • A new online MySuper comparison tool will assist members in comparing superannuation funds.
  • Pensioners and other eligible recipients will receive two additional Economic Support Payments of $250.

The above is a summary of the announced measures from the 2020-21 Federal Budget in relation to Australians’ super and retirement. Please note that the announcements still need to be passed in Parliament before they become law.

Read our 2020-21 federal Budget summary, including Sunsuper Chief Economist Brian Parker’s view on the expected economic impacts of the Budget.

Disclaimer: This summary is only intended to provide highlights of the federal Budget announcements; additional detail is still to be provided by the government. This summary is not intended to communicate Sunsuper’s view or opinion on the proposals. This article has been prepared and issued by Sunsuper Pty Ltd, (ABN 88 010 720 840, AFSL No. 228975) the trustee and issuer of the Sunsuper Superannuation Fund (ABN 98 503 137 921, USI 98 503 137 921 001). Visit sunsuper.com.au or call 13 11 84 for a copy of the PDS.