Recently, The Treasury Laws Amendment (Enhancing Superannuation for Australians and Helping Australian Businesses Invest) passed both houses of parliament and, following Royal Assent, will come into effect on 1 July 2022. Here’s what’s changed.
‘Bring forward’ arrangement on Non-Concessional Caps extended to those under age 75
The ‘Bring Forward’ arrangement previously allowed those under the age of 67 to automatically gain access to future years’ caps, making extra contributions without incurring extra tax. This arrangement will now be extended to anyone under the age of 75 at any time in the financial year (subject to total super balance).
Changes to work test requirements
Previously, if you were 67 – 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 2022, people in this age group will be able to 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.
Income threshold for super guarantee contributions removed
Previously, employers did not have to make super contributions for employees earning less than $450 per month. This legislation removes this exemption. After 1 July 2022, super guarantee contributions must be made regardless of an employee’s income.
Reduce minimum age to 60 for downsizer contribution
Previously, eligible homeowners aged 65 or over could contribute up to $300,000 each to super from the sale of their family home. This legislation has reduced the minimum age to 60.
Increase on voluntary contribution release under the First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSS) previously allowed first home buyers to release voluntary contribution amounts of up to $30,000 (plus associated earnings) to put towards their first home purchase. This legislation increases the amount to $50,000 (plus associated earnings.)
How will the changes impact you?
These changes are designed to ensure superannuation works in the best interests of Australians into the future, but how they 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.
