Federal Budget 2022
The 2022-23 Federal Budget was released on Tuesday 29 March 2022.
With the election just weeks away, this year’s budget proposed a number of measures to address the rising cost of living. This is the first budget in several years that hasn’t announced any major change to superannuation for employers or members.
Download our Budget factsheet to see some of the key proposals that may impact Cbus members.
Funding to help young tradies complete apprenticeships
The Government plans to invest $2.8 billion over five years to upskill apprentices and reward employers for hiring them.
- payments to new apprentices in priority industries of $5,000
- wage subsidies for employers who employ them of up to $15,000.
A new streamlined Australian Apprenticeships Incentive System has also been proposed with a focus on those in priority trades.
Encouraging more women to take up trades
The Government is also proposing a $38.6 million investment to encourage more women to take up trade apprenticeships.
This additional support – which will include guaranteed placings, in-training support and targeted mentoring – is hoped to help more women complete apprenticeships in male-dominated trades like plumbing and bricklaying.
Rolling infrastructure investment
An additional $17.9 billion investment has been proposed for new and existing infrastructure projects across the country – largely focussing on regions and transport. These investments are expected to support around 40,000 jobs, including many in building and construction. Funding is planned to hit each state including:
- New South Wales: $1.0 billion for the Sydney to Newcastle – Tuggerah to Wyong Faster Rail Upgrade.
- Victoria: $3.1 billion for the Melbourne Intermodal Terminals.
- Queensland: $2.7 billion for Faster Rail projects from Brisbane to the Sunshine Coast and Brisbane to the Gold Coast.
- South Australia: $2.3 billion for the North-South Corridor.
- Western Australia: $441.2 million for the METRONET.
- Tasmania: $392.0 million for the Tasmanian Roads Package.
- Northern Territory: $132.0 million for the Central Australian Tourism Roads.
- Australian Capital Territory: $46.7 million for the Athllon Drive Duplication.
Initiatives from last year’s Budget that are now law
As part of last year’s Budget, the Government announced a few initiatives that are now law. These include:
$450 salary threshold for super contributions removed
From 1 July 2022, the $450 monthly threshold for the payment of superannuation guarantee (SG) contributions will be removed. This means you’ll be required to make SG contributions to all eligible employees, regardless of how much the employee is paid.
For more information read the ATO’s recent announcement.
Work test for older Australians removed
From 1 July 2022, Cbus members aged under 75 years will be able to make or receive personal (after tax) and salary-sacrificed contributions without meeting the work conditions – known as the work test or work test exemption.
The existing contribution cap limits will still apply and members may also be able to use the bring forward rule. These members will still need to meet the work test to claim any personal super contribution deductions.
For more information read the ATO’s acceptance of member contributions and work test webpage.
The Budget factsheet
Keep your employees in the loop by downloading our 2022-23 Federal Budget factsheet. For full details, visit budget.gov.au
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions.
Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy. Also read the Target Market Determination at cbussuper.com.au/tmd
Cbus on growth path
In December 2021, Cbus and NSW energy industry super fund EISS Super signed a memorandum of understanding to complete a merger in 2022.
With $67 billion in funds under management (as at 31 October 2021), Cbus is one of Australia’s oldest and best performing industry super funds, returning on average 9.25% per annum over the last 37 years^.
Cbus’ Growth (MySuper) investment option returned 19.34% for the 2021 financial year, a record year for the fund*. Effective 14 February 2022, the Growth (Cbus MySuper) investment option has been renamed to Growth (MySuper). Cbus CEO Justin Arter said the merger would further strengthen Cbus’ position as a leading industry fund, “Cbus has had a connection and affinity with the electrical industry for decades.”
“We have a strong and growing membership of 36,000 members in the electrical trades and strong relationships with industry leaders like the Electrical Trades Union, Master Electricians and NECA”
“Cbus is a specialist fund for workers who build Australia, a fund that tailors our services such as insurance to our members. By joining together with EISS and Media Super, we will be able to deliver even more for our members by harnessing economies of scale.”
The merger with EISS, will follow that of Cbus and Media Super after the two funds signed a Successor Fund Transfer (SFT) deed last year.
Members in the print, media, entertainment and arts, and broader creative industries will join the fund, making Cbus a $70 billion funds under management.
For more information about Cbus, visit cbussuper.com.au or call 1300 361 784.
All figures stated are as at 30 June 2021 unless otherwise noted.
^Past performance is not a reliable indicator of future performance. This information is about Cbus and doesn’t take into account your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide if Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy. Also read the relevant Target Market Determination at cbussuper.com.au/tmd
* The Growth (MySuper) investment option return is based on the crediting rate, which is the return minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts.
Issued by Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.