Skip to main content

On 10 February 2022, the Treasury Law Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses invest) Bill 2021 passed and has since been given royal assent, and passed into law 

 

The Bill gives effect to the following superannuation changes effective 1 July 2022:

  • Removing the work test requirement for certain personal contributions for people aged between 67 and 75*. These contributions include non-concessional contributions, spouse contributions, contributions made under small business CGT provision, transfers from foreign super funds, salary sacrifice contributions.
  • It is important to note that people aged between 67 and 75 still need to meet the work test requirement to be able to make personal deductible contributions. 
  • Extending eligibility to make non-concessional contributions under the bring forward provision to people aged between 67 and less than 75 at the start of the financial year.
  • Reducing eligibility age for downsizer contributions from age 65 to age 60 at the time of making the contribution.
  • Increasing the maximum release amount from $30,00 to $50,000 under the First Home Super Saver Scheme. 
  • Removing the $450 per month income threshold for superannuation guarantee contributions.
  • Providing choice to SMSF Trustee on their preferred method of calculating exempt current pension income where members have both accumulation and pension benefits for part, but not all, of the year’s income. 

* The contribution must be received no later than within 28 days after the month in which the person turns 75. 

 

NOT included in this Bill

The Federal Budget proposal to relax residency requirements for SMSF members and an amnesty for legacy pension products were not included in this Bill and are yet to be legislated. 

 

Opportunities

This change may open opportunities for older Australians including:

  • Cash-out recontribution strategies 
  • Ability to make non-concessional contributions post age 67 without having to meet the work test
  • Making downsizer contributions from age 60
  • Releasing up to $50,000 of previously made personal contributions from super to buy a first home. 

 

Call us to find out more about how you could potentially benefit from these changes, or what actions may need to be assessed prior to 1 July 2022.

 

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser. 

Let Us Help You Prepare For A Brighter Future…

Claim your free initial consultation

South Eastern Wealth Group Pty Ltd trading as South Eastern Wealth ABN 74 661 731 602 is a Corporate Authorised Representative of Lifespan Financial Planning Pty Ltd AFSL No. 229892 ABN 23 065 921 735.
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Address

1414 Toorak Road

Vic, Camberwell, 3124

Connect

M: 0411 569 317

E: mark@sewealth.com.au

 

©  2024 South Eastern Wealth. Website built by Digital Nectar.

The information on this site, including the site source code is the property of South Eastern Wealth and is subject to Copyright ©. Unauthorised use of the information on this website is not permitted. Copyright in the information contained in this site subsists under the Copyright Act 1968 (Cth) and, through international treaties, the laws of many other countries. It is owned by South Eastern Wealth unless otherwise stated. All rights reserved. You may download a single copy of this document and, where necessary for its use as a reference, make a single hard copy. Except as permitted under the Copyright Act 1968 (Cth) or other applicable laws, no part of this publication may be otherwise reproduced, adapted, performed in public or transmitted in any form by any process without the specific written consent of South Eastern Wealth.