Earlier this year, The Treasury Laws Amendment (Enhancing Superannuation for Australians and Helping Australian Businesses Invest) passed both houses of parliament and will come into effect on 1 July 2022. We asked Apt’s Head of Compliance and Licensee Operations, Rhett Pudney, to explain the changes.
Rhett Pudney: The amendment made several changes to ensure superannuation continues to work for Australians into the future, including:
Extending the ‘Bring-Forward’ arrangement on Non-Concessional Caps to those under age 75
The ‘Bring-Forward’ arrangement previously allowed those under the age of 67 to gain access to future years’ caps, making additional contributions without incurring extra tax. From 1 July, this arrangement will extend to anyone aged under 75 at any time in the financial year (subject to total super balance).
Changing work test requirements
Previously, if you were aged 67 to 74 and wanted to make voluntary super contributions, you had to meet a work test unless you were eligible for an exemption. After 1 July, people in this age group can make or receive personal and salary sacrificed contributions without meeting this test. They will, however, still need to meet the work test to claim a deduction on these contributions.
Removing the income threshold for super guarantee contributions
Previously, employers did not have to make super contributions for employees earning less than $450 per month. After 1 July 2022, the super guarantee contributions are mandatory, regardless of an employee’s income.
Reducing minimum age to 60 for the downsizer contribution
Previously, eligible homeowners aged 65 or over could contribute up to $300,000 ($600,000 for a couple) to super from the sale of their family home. This will now apply to those aged 60 or over.
Increasing voluntary contribution release under the First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSS) will now allow first home buyers to release voluntary super contributions up to $50,000 (plus associated earnings) towards their first home purchase, up from $30,000 + earnings.
Seeking advice on the impact
How these changes will impact you depends on your personal circumstances and goals. Get in touch with your Apt Adviser to discuss these changes in the context of your plans and goals.
General Advice warning
The information provided in this blog does not constitute ﬁnancial product advice. The information is of a general nature only and does not take into account your individual objectives, ﬁnancial situation or needs. It should not be used, relied upon, or treated as a substitute for speciﬁc professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.