News and updates
Changes to superannuation contribution eligibility rules from 1 July 2022
Proposed superannuation changes announced in the 2021/22 Federal Budget have now been legislated. These changes relate to super contribution eligibility rules that aim to enhance superannuation outcomes for members. These changes come into effect from 1 July 2022:
Removing the work test for making super contributions
People aged 67 to 74 will no longer need to meet the work test to make non-concessional (after-tax) or salary sacrifice contributions to super, subject to existing contribution caps.
Currently, people aged 67 to 74 can only make voluntary contributions (both concessional and non-concessional) to their super or receive contributions from their spouse, if they’ve worked at least 40 hours over 30 consecutive days in the financial year, unless they meet an exemption.
The work test will still need to be met for people who wish to make personal deductible contributions to super.
Removing the $450 per month income threshold for Superannuation Guarantee (SG)
The Government will remove the minimum income threshold of $450 per month. This means that all employees will receive SG contributions.
Reducing the eligibility age to make downsizer contributions from age 65 to 60
From 1 July 2022, anyone 60 years of age or older will be eligible to make a downsizer contribution to super. The downsizer contribution allows people to make a one-off after-tax contribution to super of up to $300,000 from the proceeds of selling their home they have held for at least 10 years.
All other eligibility rules will remain unchanged.
Increasing the maximum releasable amount to $50,000 under the First Home Super Saver Scheme (FHSSS)
Currently under the FHSSS, a person can apply to have up to $30,000 of their eligible voluntary contributions (plus a deemed earnings amount) released from super to purchase their first home. The Government will increase the maximum releasable amount from $30,000 to $50,000.