Legislation has finally passed to give effect to several of the key super changes proposed in the 2021 Federal Budget. These changes effective 1 July 2022 include;
- No work test for individuals between the ages of 67-75 when making salary sacrifice and personal superannuation contributions (post tax money).
- Anyone aged 75 or under can now make up to $110,000 per year of personal super contributions from post-tax money without needing to meet a work test
- The three year ‘Bring Forward Rule’ (3 x $110,000pa of personal super contributions can be made in a single year) is now available to individuals aged under 75 at the beginning of the financial year
- Home Downsizer super contributions now available to those aged over 60 – anyone aged over 60 (previously 65) who has owned a home for at least 10 years and meets other eligibility requirements can make a home downsizer super contribution of up to $300,000 per person (or $600,000 as a couple where the home is jointly owned). These contributions do not count towards the general contribution caps.
- Removal of minimum salary to receive Super Guarantee Contributions (SGC) – employees will no longer need to earn a minimum of $450 per month to receive employer SGC (10% super contributions).
For further details on these strategies and how they may apply to your situation please speak with your Adviser.
Authors: Samuel Adams and Glen Orbell