On 1 July, some changes to super will come into effect, which were announced in last year's Federal Budget. Changes include:
- Reducing the downsizer contribution eligibility age to age 60.
From 1 July 2022, eligible home owners aged 60 or older can contribute up to $300,000 into their super from the proceeds of selling their main home. Previously, the minimum age was 65, so more people can now benefit from this measure. Find out more, including eligibility rules, in our Downsizer contribution measure factsheet.
- Partially removing the work test for those aged 67 to 75.
From 1 July 2022, people over the age of 67 but under 75 years of age will no longer need to meet a 'work test' when making or receiving before-tax and after-tax contributions. The work test required people to be employed for at least 40 hours over 30 consecutive days during a financial year. Note: the work test will still be required for people in that age range who wish to claim a tax deduction for their personal (after-tax) contributions.
- Extending the after-tax contributions bring-forward age limit to age 75.
On 1 July 2022, the cut-off age for accessing the bring-forward rule on after-tax contributions will be increased from 67 to 75 years, so more people can now benefit from this measure. For more details about bring forward arrangements, read our How much can I add to my super account? factsheet.
- Increasing the First Home Super Saver Scheme (FHSSS) release amount from $30,000 to $50,000.
The FHSSS scheme is designed to help first-home buyers save for a deposit using their super account. Find out more in our First Home Super Saver Scheme factsheet.
- Removing the $450 threshold to receive super contributions.
From 1 July 2022, employers need to make super contributions for eligible employees regardless of how much they're paid. Previously, employers generally only needed to pay super contributions for employees who’re paid $450 or more per month.
And remember, from 1 July 2022, the amount of super your employer needs to pay into your account will increase from 10% to 10.5%, which will help increase your retirement nest egg.
More information
If you're a Mine Super member and have any questions about these changes or about super in general, or would like to make an appointment with Mine Super Financial Advice, please call us on 13 64 63 or email help@mine.com.au.