Several significant changes to superannuation rules come into effect from 1 July 2022.
The changes create a range of opportunities.
In particular, the ability for retirees to contribute to super up to age 75 is a big one – and will allow many people to restructure their investments for a better taxation and Centrelink outcome.
Let’s take a look at the main changes.
Removal of the work test for some types of super contributions
Individuals aged 67 to 75 will no longer need to meet the work test to make:
- Non-Concessional super contributions
- Salary sacrifice super contributions
This will allow many retirees to add up to $330,000 extra into their super (subject to some criteria).
Removal of minimum salary threshold for employer super
Currently employers don’t need to pay super contributions if you earn less than $450/m.
This will be abolished – benefiting lower income earners.
Expanding eligibility for downsizer contributions
Downsizer contributions allow you to invest proceeds from the sale of your home into super (subject to eligibility).
The current minimum age threshold of 65 is being reduced to 60.
Increasing the First Home Super Saver Scheme maximum accessible amount
This scheme allows people to access some of their super to purchase their first home.
The maximum amount of voluntary contributions that can be released under the Scheme will increase from $30,000 to $50,000 plus earnings.
These changes (and a few others) will open up some interesting opportunities from 1 July. We will be working through these with each of our clients as part of our annual review process.
Please contact our office on (08) 8232 9498 if you would like to discuss further.