23 Feb 4 Changes to Super you need to know
Changes to Australia’s superannuation laws were passed through both houses of parliament last week and will come into effect on 1 July, 2022.
These changes are set to benefit Australian superannuation fund members.
1. The Superannuation Guarantee is legislated to increase from the current 10% to 10.5%. Also, previously superannuation (SGC) was only paid if you earned a minimum of $450 per month. The $450 a month wage threshold for SGC contributions will be abolished from 1 July 2022 and superannuation (SGC) will be paid on ALL wages. This will greatly benefit part-time or casual workers.
2. The First Home Super Saver Scheme, where you can withdraw money from Superannuation for a house deposit, will increase from the current level of $30,000 to $50,000. This is aimed to fast track home ownership for first home buyers.
3. More people will be able to access the Downsizer Contribution following the dropping of the minimum age qualification from 65 to 60. The downsizer scheme allows you to make a one-off contribution into your super of up to $300,000 (or $300,000 each for a couple) from the sale of the family home (lived in for a minimum of 10 years)
4. Scrapping of the work test for retirees where previously if you were aged between 67 – 74 years you had to meet a work test to make eligible super contributions. From 1 July 2022 this work test has been abolished and anyone aged up to 75 years will be able to make any type of super contribution (within contribution limits).
If you have any questions about these changes, please give us a call on 07 5449 9955.