KEY SUPERANNUATION CHANGES
From 1 July 2022
1. Removal of the work test for those aged 67 -74 years
Voluntary super contributions can now be made to top up your super without having to meet any work test. This opens the door for many in this age group, who would otherwise be restricted in adding additional monies, allowing the investment of accumulated cash in bank accounts for example, earning little to no interest, to be better utilised via the vehicle of superannuation.
2. Changes to the Downsizer Contribution
The age to be able to contribute up to $300,000 (per person) from the proceeds of the sale of your home into super has now been lowered from age 65 to age 60. The other requirements are still in place to qualify such as owning the property for a 10-year period. Did you know however that an investment property MAY also qualify for the Downsizer contribution in some instances? Call us to find out how.
3. Super Guarantee increase
The minimum amount an employer must pay into an
eligible employee’s super account has risen from 10% to 10.5%. With this increase, it is important to ensure any Salary Sacrifice into Super takes into account the additional employer contribution, so your total concessional (before tax) contributions DO NOT exceed the maximum cap of $27,500 per annum.
4. Removal of the $450 per month income threshold
This threshold has been scrapped meaning that if you earn less than $450 per month, then you will be entitled to receive eligible Super Guarantee payments from an employer. This is good news for casual workers.