Despite the positive trend being quickly reversed following the outbreak of the coronavirus and the ensuing drawdown in markets, super fund returns held up remarkably well over a longer period, SuperRatings said.
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Super funds post solid returns in January despite volatility
Super funds started the year in positive territory as momentum in local and international share markets carried through into the new year, according to the latest data from SuperRatings.
Budget highlights at a glance
Major Spending Initiatives
- $36 billion in new spending
- $17 billion in personal tax cuts
- $8.5 billion in universal Medicare spending
- $5 billion for childcare
- 20% of student debt wiped for 3 million students
- $150 off power bills for all households and small businesses
- Prescription costs capped at $25 each
Economic Forecasts
- Growth: 1.5% in 2024-25, rising to 2.25% in 2025-26
- Inflation: Expected to return to 2-3% band by June 2025
- Wage growth: Outpacing cost of living rises by 0.5% this year
Business Measures
- Non-compete clauses removed for workers earning under $175,000
- $20 million “Buy Australian” advertising campaign
- Incentives for construction and building worker apprentices doubled from $5,000 to $10,000
- Uncertainty around the instant asset write-off scheme
- Foreign investors restricted from buying new homes
Budget Position
- Deficit: $27.6 billion in 2024-25, rising to $42.1 billion in 2025-26
- Government spending as a percentage of GDP rising to 27%
