| Read about the Budget's super changes. The keys to retirement confidence. The super costs of career breaks. | | View this email online |  |  | Welcome to this week's edition of Smart Investing.
The latest Federal Budget has been handed down, with the Government's overriding objective to strengthen the Australian economy over the medium term.
The Government has also announced a series of shorter-term measures aimed at delivering some cost-of-living relief to help offset the impacts of high inflation and rising interest rates.
Meanwhile, there are several measures in the Budget that specifically relate to superannuation, including:
- A reduction in the super earning tax concessions for individuals with a Total Superannuation Balance exceeding $3 million from 1 July 2025. Investment earnings from an individual's balance above $3 million will then be taxed at 30 per cent, double the current 15 per cent tax rate.
- From 1 July 2026 all employers will be required to make compulsory super payments to their employees at the same time they pay their salary and wages.
- Meanwhile, $94 million of funding over four years has been allocated for the Australian Tax Office to improve its enforcement processes for the timely payment of tax and super liabilities.
This week we've specifically focused on improving super and retirement outcomes for Australians, with a series of articles linked to the release of Vanguard's inaugural How Australia Retires study.
The study, which was released last week, collates responses from more than 1,800 working and retired Australians and identifies some clear themes around why some people are more confident about their retirement than others.
We look at the importance of having a well-documented and detailed financial plan, and the strong link between receiving professional financial advice and overall retirement confidence.
Lastly, with more younger Australians than ever indicating they intend to take some form of career break at some point in the future, we calculate the potential impact on super balances if no remedial action is taken. | | | | | The keys to high retirement confidence | | Our inaugural How Australia Retires study has uncovered some common themes that make Australians highly confident about their retirement. | | Read article | | | | | | | The strong link between advice and retirement confidence | | Seeking professional advice leads to greater confidence in being financially prepared for retirement. | | Read article | | | | | | | Do career breaks come with a retirement price tag? | | More working-age Australians intend to take a career break. We've calculated the potential impact of doing so on retirement balances. | | Read article | | | | | | | Rise in defaults heralds a new wave of zombies | | Expect an increase in listed zombie companies as higher interest rates begin to bite. It's why portfolio diversification is key. | | Read article | | | | | | | Charting bear and bull markets | | Bull market surges have been longer and stronger than the bear markets that preceded them. | | Read article | | | | Vanguard and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.
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