Recently the Government passed laws that confirm and implement a number of superannuation proposals with effect from 1 July 2022, i.e. next financial year.
These changes make superannuation more accessible and in greater amounts for a significant number of Australians, so it is very welcome news.
Partial removal of the Work Test
The Bill contained measures to apply the work test for people aged 67 to 74 who are claiming a tax deduction for personal superannuation contributions.
The Government has also indicated they intend, via Regulation, to remove the work test for people aged 67 and 74 for certain types of voluntary contributions such as non-concessional and salary sacrifice contributions from July 1, 2022.
Extension of Non-Concessional bring-forward rule
The Bill allows individuals aged 67 to 74 to make non-concessional superannuation contributions under the bring-forward rule.
Removing $450 per month threshold for salary or wages to count towards SG
The Bill removes the $450-a-month threshold before an employee’s salary or wages count towards Superannuation Guarantee (SG). This will be a great benefit to lower income and part-time workers.
First Home Super Saver Scheme maximum releasable amount
Amends the Taxation Administration Act 1953 to increase the limit on the maximum amount of voluntary contributions made over multiple financial years that are eligible to be released under the First Home Super Saver Scheme from $30,000 to $50,000.
Lower eligibility age for Downsizer Contributions
Currently downsizer contributions, after selling the family home may only be made by individuals aged 65 and above. From 1 July 2022 individuals aged 60 and above will be able to make downsizer contributions to their superannuation.