There's a range of changes to the superannuation system, effective from 1 July 2022. The changes provide further opportunities to get money into super and bolster your retirement nest egg.
Here's a summary of the changes:
- Individuals up to the age of 74, will no longer need to meet a work test to make voluntary, non-deductible, contributions.
- Individuals up to the age of 75, with a total super balance under $1.7 million, will have the opportunity to make large non-concessional contributions (possibly up to three years’ worth) in a single year.
- The minimum age to make downsizer contributions will reduce from age 65 to 60, allowing more individuals to use the proceeds from the sale of their home, to fund their retirement.
- The Superannuation Guarantee (SG) rate will increase from 10% to 10.5% p.a. for all and the $450 minimum income threshold for SG contributions, will be removed. SG is planned to increase 0.5% p.a until it reaches 12% in the 2025/2026 financial year.
- The amount of eligible contributions that can count towards the First Home Super Saver Scheme maximum releasable amount across all years, will increase by $20,000, from $30,000 to $50,000. The amount of eligible contributions that can count towards this total for each financial year will remain at $15,000
The advice on this website may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
The advice on this website may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
