There are a number of superannuation changes that will take effect from 1 July, 2022.

Superannuation Guarantee:

  • Increase in super guarantee percentage – Super Guarantee (SG) increases from 10% to 10.5%. It will continue rising 0.5% each year until it reaches its final rate of 12% on 1 July 2025.
  • Removal of the $450 monthly superannuation guarantee threshold – The $450 monthly minimum wage threshold to qualify for employer Super Guarantee contributions has been abolished. Employers must now make super contributions for all their employees (including casual and part-time employees) regardless of how much they earn, with one exception – employees aged under 18 and working less than 30 hours per week.

Superannuation Contributions:

  • Reduction in eligibility age for downsizer contributions – The eligibility age for making downsizer contributions into super will be 60 years, instead of 65 years. Individuals can contribute up to $300,000 per person, or $600,000 per couple under the downsizer rules.
  • Increase in age limit for voluntary super contributions – Individuals aged 67 to 74 can make a non-concessional, voluntary super contribution without satisfying the work test (or work test exemption). Non-concessional contributions cap still applies, as well as total super balance of less than $1.7 million.
  • Spouse contribution age limit increased – If you are aged 67 to under 74, it will be possible to make a contribution into your spouse’s super account without you or your spouse needing to meet the requirements of the work test (or work test exemption). Non-concessional contributions cap still applies, as well as total super balance of less than $1.7 million.
  • Increase in age limit for salary-sacrifice contributions – Anyone under age 75 can make salary-sacrifice contributions into superannuation without needing to meet the work test, subject to total super balance of less than $1.7 million and non-concessional contribution caps.
  • Increase in age limit for bring-forward rule – The age limit for the bring-forward rule for non-concessional caps has been raised from 67 to under 75. This allows up to three years’ non-concessional contribution caps to be brought forward.

Superannuation Withdrawals:

  • Increase in First Home Super Saver Scheme (FHSSS) limit – The maximum that can be released through the First Home Super Scheme (FHSS) increases from $30,000 to $50,000. However, the annual limit for voluntary contributions eligible for the scheme remains at $15,000 per financial year.
  • Temporary reduction in super pension minimum drawdowns – The government has extended the temporary reduction in the minimum drawdown rates by 50% for account-based pensions and similar products in the 2022–23 income year.

If you have any questions about your superannuation, or whether these changes are particularly relevent to you, please contact me on (02) 9908 9888, or email wealth@edneyryan.com.au.