As of July 1, 2022, new rules will benefit retirees through contribution opportunities, tax breaks for home buyers, downsizers, and contribution opportunities for those earning less than $450 per month.
There are changes to super which take effect from 1 July 2022. The following are changes you should know about:
An increase in the Super Guarantee rate
The compulsory SG contributions employers pay to employees will increase to 10.5% from 10%. The SG contribution rate will continue to increase by 0.5% until it reaches 12% in 2025. The table below shows the contribution rates that will apply in the coming years.
Removal of $450 monthly income threshold
The monthly minimum wage threshold of $450 for employees to qualify for SG payments will be removed from 1 July 2022. This measure primarily assists low-income earners to have employer contributions paid to super boosting their retirement savings. Employers will be required to pay SG contributions to their employees 18 years and older, even when the employee earns less than $450 each month.
Abolishing the work test for people aged between 67 and 74
From 1 July 2022, members under 75 years of age will be able to make or receive personal contributions and salary sacrificed contributions without meeting the work test, subject to existing contribution cap limits. They may also be able use the bring forward rule. However, those aged 67 to 74 will need to meet the work test if they wish to claim a personal super deduction for their contribution.
Increasing the bring forward non-concessional contribution rule
For those aged 67 to 74, the bring forward non-concessional contribution rule will be increased.
The non-concessional contribution cap is $110,000 for the 2021-22 year. The 2020-21 NCC cap was $100,000.
For the 2021-22 year, members aged under 67 have an option to contribute up to $330,000 ove a three-year period, depending on their total superannuation balance (TSB).
From July 1, 2022, members aged under 75 (up from age 67) will have now have an option to contribute up to $330,000 over a three-year period, depending on their total superannuation balance (TSB).
The TSB rule is as follows for 2021-22 onwards:
As of July 1, 2022, new rules will benefit retirees through contribution opportunities, tax breaks for home buyers, downsizers, and contribution opportunities for those earning less than $450 per month.
There are changes to super which take effect from 1 July 2022. The following are changes you should know about:
An increase in the Super Guarantee rate
The compulsory SG contributions employers pay to employees will increase to 10.5% from 10%. The SG contribution rate will continue to increase by 0.5% until it reaches 12% in 2025. The table below shows the contribution rates that will apply in the coming years.
Removal of $450 monthly income threshold
The monthly minimum wage threshold of $450 for employees to qualify for SG payments will be removed from 1 July 2022. This measure primarily assists low-income earners to have employer contributions paid to super boosting their retirement savings. Employers will be required to pay SG contributions to their employees 18 years and older, even when the employee earns less than $450 each month.
Abolishing the work test for people aged between 67 and 74
From 1 July 2022, members under 75 years of age will be able to make or receive personal contributions and salary sacrificed contributions without meeting the work test, subject to existing contribution cap limits. They may also be able use the bring forward rule. However, those aged 67 to 74 will need to meet the work test if they wish to claim a personal super deduction for their contribution.
Increasing the bring forward non-concessional contribution rule
For those aged 67 to 74, the bring forward non-concessional contribution rule will be increased.
The non-concessional contribution cap is $110,000 for the 2021-22 year. The 2020-21 NCC cap was $100,000.
For the 2021-22 year, members aged under 67 have an option to contribute up to $330,000 ove a three-year period, depending on their total superannuation balance (TSB).
From July 1, 2022, members aged under 75 (up from age 67) will have now have an option to contribute up to $330,000 over a three-year period, depending on their total superannuation balance (TSB).
The TSB rule is as follows for 2021-22 onwards:
