ArticleSuper Changes are Finally Here

Superannuation changes create new opportunities for retirees

The May 2021 Budget proposed changes to superannuation were finally passed and some very important rule changes will apply from 1 July, 2022.

These measures were first announced in the 2021 Federal Budget and were incorporated in the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, and include the following:

Superannuation Changes

  • For those aged between 67-74 years of age.
    • Removal of the work test for non-concessional contributions and salary sacrifice arrangements; and
    • Extending the bring forward non-concessional contributions.
  • Lowering the age to make downsizer contribution from the sale of your principal place of residency from age 65 to 60.

The requirement to meet the work test to make member deductible contributions will still apply for those between 67-74 years of age.

Slomoi Immerman Partners can assist you with working through these new opportunities to maximise your retirement savings and optimise estate planning.

A few other measures that have also become law, include the following:

  • Removal of the $450 per month threshold – employers are now obliged to pay super guarantee to all employees earning less than $450 per month.
  • Increasing the maximum amount of voluntary contributions that (if eligible) can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
  • Superannuation trustees have the choice between two methods on how they calculate exempt current pension income (ECPI) for those members who have an interest in both accumulation and retirement phase at one time, but only retirement phase interest at another time during an income year.

 

To check if you are elligible for the above and can benefit from these changes, please contact Sharon Gdanski.

Author: Sharon Gdanski - Director, Superannuation