This year’s Federal Budget quietly made super a more powerful tool for under-45s.
Most of the Budget headlines focused on housing and tax changes, but buried in the fine print is something potentially just as important: super.
Other parts of the Budget are pushing super even further into the spotlight, namely the changes to negative gearing and CGT.
“Major tax changes targeting property investors - like winding back negative gearing and overhauling capital gains tax - will see super become one of the most reliable, tax-effective ways to build wealth”, says Amado.
Primary school teacher and Aware Super member, Samantha Walsh, is one of the many working Australians who never thought super really mattered.
Like a lot of under-45s, she wasn’t paying attention to her super, especially amidst raising her young family. Retirement felt far away - something for “future me” to worry about.
“I used to think super was one of those things you deal with later”, she said. “But once I actually looked at it, I realised how much of a difference small changes now - like picking an investment option - can make long-term.”
And that’s exactly where this year’s Budget shifts the dial.
For Samantha, that’s shifted how she thinks about money.
“You always hear about investing or buying property”, she said. “But I’ve realised your super is actually one of the easiest ways to grow your money because it’s already there.”
That’s a sentiment more young Australians are starting to share.
With the cost of living biting and home ownership feeling increasingly out of reach, super is becoming less of an afterthought, and more of a long game strategy.
It’s not flashy. It’s not instant. But this Budget just made one thing clear: If you’re under 45, your super might be doing more heavy lifting for your future wealth creation than you think.
