On the 10th of February 2022, parliament agreed to enact new laws in relation to superannuation, previously announced in the last federal budget. These new laws aim to provide greater flexibility for members to get more monies into their funds over their lifetime.
A summary of the changes are below:
Removal of superannuation guarantee (SG) minimum threshold
The changes remove the minimum salary threshold before an employee’s salary or wages count towards the superannuation guarantee. The previous minimum threshold was $450 a month in salary or wages before SG was payable for employees.
This change is effective from 1 July 2022.
First home super saver scheme maximum releasable amount increased
The maximum amount that can be released in relation to this scheme has been increased to $50,000. This previously was set at a maximum of $30,000.
This change is effective from 1 July 2022.
Reduced eligibility age for downsizer contributions
The eligibility age to make a downsizer contributions has been lowered to age 60 from age 65.
This change is effective from 1 July 2022.
Work test reforms for superannuation contributions
A person who is under age 75, can now make voluntary contributions into their fund without needing to pass the work test, this applies to non-concessional contributions and salary sacrifice contributions.
A person under the age of 75 who wishes to claim a deduction for a personal contributions will still need to pass the work test. These changes will allow members to make non-concessional contributions under the bring forward rules if they are eligible to do so.
These changes are effective from 1 July 2022.
Segregated current pension assets
Trustees of super funds can now choose which method they intend to calculate exempt pension income with, where there are periods in a financial year where assets are supporting solely pension accounts, and a mix of pension and accumulation accounts. The choice is recommended to be documented by the trustee.
This change is effective when it receives royal assent but is expected to apply from 1 July 2021.
If you would like to discuss any of the above or any other superannuation matters, please contact Daniel Shaw, DFK Benjamin King Money Superannuation Director and SMSF Specialist on 03 9098 4299.
