Through the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, there has been a number of changes to the superannuation rules. These changes include:
- Extending the age of which individuals are eligible to access the non-concessional bring forward rule to age 74 or less. Previously, the bring forward rule was only accessible to individuals aged 67 or less. This bring forward rule allows individuals to contribute up to $330,000 at once.
- As part of these contribution changes, individuals aged 67 to 74 will no longer be required to meet the work test to be able to make non-concessional contributions, or salary sacrifice contributions.
- Reducing the minimum age at which an individual is eligible to make a downsizer contribution from 65 to 60.
- Increasing the maximum amount of voluntary contributions that can be made under the First Home Super Saver Scheme from $30,000 to $50,000.
- Removing the $450 per month income threshold under which employees did not have to be paid the superannuation guarantee by their employer.
All of these changes are effective from 1 July 2022.
The eligibility requirements for non-concessional contributions that are unchanged include:
- To be eligible for a three-year bring forward period, and contribute up to $330,000 of non-concessional contributions, individuals must have a total superannuation balance at the previous 30 June of under $1.48m.
- To be eligible for a two-year bring forward period, and contribute up to $220,000 of non-concessional contributions, individuals must have a total superannuation balance at the previous 30 June of under $1.59m.
- Individuals with a superannuation balance between $1.59m and $1.7m, will not be able to use the bring forward rule, but can contribute a regular non-concessional contribution of up to $110,000.
If you would like to read the bill, please click here.