Game Changers Announcements Impacting Super from 1 July 2022 – Now Legislated
Changes to Contributions Work Test – Possible Planning Opportunity
The requirement to meet a work test for those aged 67 to 74 has now been repealed for non-concessional and salary sacrificed contributions, including bring forward contributions. This means that anyone can contribute to super up to their 75th birthday regardless of work status assuming the member has less than the transfer balance cap which is currently $1.7m.
Please note that the work test continues to apply for personal concessional contributions.
The current contributions limits will apply.
Concessional – $27,500 per annum
Non-Concessional – $110,000 per annum
Bring forward Non- Concessional – $330,000
The eligibility age for downsizer contributions has been reduced from age 65 to age 60. You still need to have owned your home for 10 years or more. If you are considering selling your home, you may be eligible to contribute more to your super. The downsizer scheme allows you to make a one-off contribution into your super of up to $300,000 (or $300,000 each for a couple ie $600,000 in total) from the sale of the family home. This contribution does not count towards any concessional or non-concessional contribution caps.
Assistant Treasurer Michael Sukkar said this would allow more older Australians to “consider downsizing to homes that better meet their needs, increasing the supply of larger homes for young families”.
“From 1 July 2018 to the end of January 2022, 36,800 individuals have contributed $8.9 billion to their superannuation under this measure,” said Mr Sukkar.
Removal of the $450 per month income threshold for employees over 18 years of age – i.e. super is payable from the $1 for employees
Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.