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Speaker 1: You're listening to the Saturday Morning with Jack team podcast

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Speaker 1: from News Talks that'd be.

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Speaker 2: So it was kind of not necessarily the centerpiece, but

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Speaker 2: a big part of the government's budgets. On Thursday, several changes,

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Speaker 2: notable changes to the key we Save a scheme. Lisa

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Speaker 2: Dudson is our personal finance expertencies with us. Now, Hey, Lisa,

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Speaker 2: good morning Jack. So let's run through a couple of

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Speaker 2: these changes and explain what they're going to mean for people.

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Speaker 2: Let's start off with the contribution rate. So they're staggering

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Speaker 2: the increase from three percent up to four percent. It

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Speaker 2: goes to three and a half percent next year, and

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Speaker 2: then to four percent by April twenty twenty eight. What's

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Speaker 2: this going to mean?

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Speaker 3: Well, I actually think for most people it's going to

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Speaker 3: be a really good thing because I guess it's going

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Speaker 3: to be growing their balances for the long term, so

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Speaker 3: that's you know, no one can really complain about that.

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Speaker 3: It also helps home buyers build up a bigger deposit

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Speaker 3: for their home. The challenge has been for you know,

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Speaker 3: some commentators believe that it's going to be a little

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Speaker 3: bit harder for those who are on a lower income

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Speaker 3: to be to afford those four percent increases when they

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Speaker 3: come in.

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Speaker 2: Yeah, I mean, can you understand how that might be

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Speaker 2: tricky for some people, But yeah, by staggering, hopefully you know,

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Speaker 2: they'll be able to make that transition. It's also going

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Speaker 2: to be a little bit harder for business as well,

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Speaker 2: of course, I mean this.

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Speaker 3: Is good well know, yeah, well yeah, and given you know,

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Speaker 3: times of puff and we're still in a bit of

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Speaker 3: a cost of living crisis, so you know, I think,

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Speaker 3: you know, it's trying to balance that short term versus

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Speaker 3: long term, right, because on one hand we kind of go,

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Speaker 3: we're things are a bit tough at the moment, just

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Speaker 3: but on the other hand, we're going, well, if we

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Speaker 3: don't start contributing more to our super then we're having

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Speaker 3: hard time financially, you know, when we're post that sixty five.

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Speaker 3: So you know, it's just trying to find a balance.

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Speaker 3: And interestingly, when you compare it to Australia, who started

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Speaker 3: a sort of three to four percent in nineteen ninety two,

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Speaker 3: it took them almost twenty years to start to increase

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Speaker 3: it to nine percent and then now it's I think

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Speaker 3: it was twelve and July. Yeah, so that's kind of

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Speaker 3: where we need to be heading. And I guess once

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Speaker 3: these stanges come in, we'll be at eight each between

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Speaker 3: the employee or close to eight between the employee and

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Speaker 3: the employer. So we're you know, we're getting there.

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Speaker 2: Twelve percent. You think about that like a quarter of

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Speaker 2: you know, if you have a twelve percent employee salary,

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Speaker 2: twelve percent contribution from the employer as well, you're looking

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Speaker 2: at a quarter of your salary.

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Speaker 3: And yeah, I know, yeah here, yeah, right, okay.

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Speaker 2: I checked. I checked out the tax rates too for

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Speaker 2: the for the employer contribution and for most people I think,

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Speaker 2: you know, depending on incomes, most people would be taxed

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Speaker 2: less on the employer contributions in Australia than they would

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Speaker 2: in New Zealand as well, which is interesting. So the

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Speaker 2: scheme's being extended now from to sixteen and seventeen year olds.

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Speaker 2: So you get automatically enrolled in keep we say, for

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Speaker 2: at eighteen, but you can voluntarily opt in a little

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Speaker 2: bit earlier. That's going to be a good thing, right.

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Speaker 3: Yeah, Well, because you have a couple of extra years

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Speaker 3: to sort of build towards your home deposit or you

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Speaker 3: and or you know, your future you know, retirement pot

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Speaker 3: of money, so you know, that's great. I think the

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Speaker 3: other side effect is that might be the you know,

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Speaker 3: younger people are starting to get a sense of, you know,

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Speaker 3: how the financial world works from it's like the younger age,

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Speaker 3: So that can't be bad. So I think I think

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Speaker 3: most of U should be pretty happy about that new policy.

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Speaker 2: What do you think about the government contribution changes though?

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Speaker 3: Ah, you know, again, it's you know, it's always trying

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Speaker 3: to find that balance between you know, different people circumstances.

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Speaker 3: But I think, you know, they're trying to save the

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Speaker 3: money overall. I guess the government's trying to be a

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Speaker 3: bit more fiscally responsible because they realize that there's there's

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Speaker 3: been more money going out and coming in the last

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Speaker 3: couple of years, and sometimes that comes home to roost.

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Speaker 3: So you know, for some people it's not necessarily not ideal,

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Speaker 3: you know, the effect cost for most people if now

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Speaker 3: contributing to QB sabers, two hundred and sixty dollars a

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Speaker 3: year doesn't sound like a lot, but it does add

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Speaker 3: up over time. You know, for those under one hundred

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Speaker 3: and eighty thousand SORR, I've paid over one hundred and

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Speaker 3: eighty thousand dollars, they lose it all together. Is it

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Speaker 3: really going to make a difference to people earning that

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Speaker 3: high level of income. No, so maybe not necessarily ideal,

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Speaker 3: but you know, you can't hear everything.

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Speaker 2: Yeah, yeah, it's interesting. It's going to be fascinating to

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Speaker 2: see how it all, you know, unfolds over the next

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Speaker 2: months and years. Thank you very much, Lisa. Important to

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Speaker 2: point out too that I think the big changes for

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Speaker 2: the contribution, for the government contribution, they don't come into

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Speaker 2: effect until next year. So at the moment, if you

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Speaker 2: haven't if you like, if you're self employed, for example,

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Speaker 2: and you want the government contribution, you could go in

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Speaker 2: and do the minimum or do the do the one

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Speaker 2: forty two dollars. I think it's by the end of June,

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Speaker 2: and if you've gotten in on time, so long as

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Speaker 2: you've got it in on time, you will get the

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Speaker 2: maximum government contribution for this year, which is what five

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Speaker 2: hundred and twenty one dollars. So next year it'll be different,

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Speaker 2: but you get the maximum contribution five hundred and twenty

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Speaker 2: one dollars this year, so long as you make that

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Speaker 2: contribution on time.

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Speaker 1: For more from Saturday Morning with Jack Tame, listen live

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Speaker 1: to news talks that'd be from nine am Saturday, or

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Speaker 3: Know