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Superannuation Changes

by Digital Mayne Media

The passage of legislation that aims to reduce complexity and make it easier for older Australians to contribute to superannuation has been a welcome change.

A number of superannuation proposals announced in the 2021 Federal Budget were introduced into Parliament in the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021. This Bill has passed both houses of Parliament without amendment and awaits Royal Assent to become law.

Natasha Panagis, Head of Superannuation at Tax and Super Australia, said this is welcome news for many older Australians wanting to top up their superannuation savings for retirement.

“Removing the work test for individuals aged between 67 to 74 to make non-concessional and salary sacrifice contributions will provide further opportunities for individuals under 75 to top up their superannuation from 1 July 2022.”

“This will help individuals who are currently unable to contribute to their superannuation because they are no longer working to do so now.”

The legislation also allows individuals aged 74 to use the two or three-year bring-forward rules to make a non-concessional contribution to superannuation in the same way an individual under the age of 67 can.

The eligibility age for downsizer contributions from 65 to 60 from July 1, 2022 is another welcome addition. “The downsizer contribution rules have been a popular strategy for individuals who are 65 or over and this change will now allow more people to downsize and contribute their sale proceeds to their superannuation earlier.”

Regarding the removal of the $450 per month minimum superannuation guarantee (SG) threshold before an employee’s salary or wages count for superannuation guarantee, Ms Panagis said:“This is a fair and positive change which will allow many young and/or lower-income and part-time workers, where most of these people are female, to start receiving SG contributions from their employer, regardless of how much they earn per month.”

Ms Panagis says first home buyers also benefit from the changes as the first home super saver scheme releasable amount will be increased to $50,000. Individuals will be able to make requests for release on or after July 1, 2022.

For more information visit www.taxandsuperaustralia.com.au

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