There are a number of superannuation changes that will take effect on 1 July 2022. We’ve summarised some of the key ones below.
1. Superannuation Guarantee increase
The Superannuation Guarantee, also commonly known as employer contributions, will increase from 10% to 10.5% from 1 July 2022.
2. $450 monthly income threshold removed
Prior to 1 July 2022, employees had to earn a minimum of $450 a month to be eligible for the Superannuation Guarantee. This rule has been scrapped.
People under 18 years of age will be eligible for super if they work more than 30 hours in a week, regardless of how much they are paid.
These changes are expected to slightly decrease the gender gap and increase retirement income for those who obtain a lower income or are part-time workers.
3. Changes to Work Test requirements
The super contribution Work Test (which requires a person to be employed for a minimum of 40 hours, over a 30-day period), will be abolished for those aged between 67 and 74.
This means that members under the age of 75 years will be able to make or receive personal contributions and salary sacrifice, regardless of their employment status.
Current caps and contribution limits will continue to be applied. To learn more, click here.
4. First Home Super Saver Scheme (FHSS) withdrawal increase
For first home buyers, the amount of eligible contributions that can be accessed across a year, for a deposit towards a first home, will increase from $30,000 to $50,000 for each individual (a couple can access up to $100,000).
The amount of eligible contributions that can count towards this total each financial year will remain at $15,000 for each individual.
The $50,000 limit on eligible contributions will only apply to requests for FHSS determinations made from 1 July 2022. The $50,000 limit will not apply to FHSS determinations made prior to 1 July 2022.
If you’d like to learn more about the FHSS scheme, click here.
5. Retiree downsizer contributions – eligible age reduced to 60
Retirees who downsize their family home will be able to use the proceeds from the sale of their home to contribute up to $300,000 to their super ($600,000 for couples). Previously, this was allowed from age 65 onwards – the eligible age has been reduced to 60.
This contribution is classified as a non-concessional (post-tax) contribution, and is allowed in addition to existing super rules and caps, including the total super transfer balance cap of $1.7 million. Click here for more details.