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Changes to Superannuation from 1 July 2022

Posted 20 Jul

Changes to Superannuation from 1 July 2022

From 1 July 2022, there are several changes to superannuation laws that you may be able to take advantage of.

Changes to voluntary contributions

If you are aged between 67 and 74, you will be able to make voluntary contributions into your superannuation without needing to meet the work test. Before 1 July 2022, if you were over the age of 67 you were required to work in gainful employment for at least 40 hours over 30 consecutive days before making a voluntary contribution.

The work test is only applicable from 1 July 2022, if you intend to claim a tax deduction for a voluntary contribution.

Bring-forward of non-concessional contributions

From 1 July 2022, you may be able to bring-forward 3 years’ worth of non-concessional contributions up to the age of 75.

If you are 74 years of age on 1 July 2022 and have a total superannuation balance of less than $1.48 million, your non-concessional contribution limit is $330,000 using the bring-forward rule.

Downsizer contributions

If you are over the age of 60 and you sell your family home, you may be able to make a downsizer contribution of $300,000 per person into your superannuation fund. Before 1 July 2022, the age limit was 65.

Certain eligibility requirements apply, such as having owned the main residence for at least 10 years, not having made a previous downsizer contribution, and making the contribution to your superannuation fund within 90 days of settlement.

Superannuation guarantee

The superannuation guarantee rate has increased from 10% to 10.5% for earnings after 1 July 2022. This rate is legislated to consistently rise by 0.5% per financial year, up to 12% for the 2025–26 income year.

First home super saver scheme

From 1 July 2022, the maximum amount of contributions that can be released from your superannuation under the first home super saver scheme (FHSSS) will increase from $30,000 to $50,000. The increase will apply to withdrawal requests from 1 July 2022.

The yearly limit that an individual can apply to withdraw remains the same at $15,000 per year. To be eligible to access the FHSSS, these contributions must be voluntary contributions.

These changes may greatly impact your ability to grow your retirement savings. For further information on how these changes can benefit you, please get in touch with your WDF contact or phone 02 6921 5444.

Sarah Cochrane

Accountant


 

WDF Accounting and Advisory | Accountants Wagga | Your partners in business

Providing carefully tailored accounting solutions in business advisory, tax compliance, bookkeeping, Self-Managed Super funds, and more.



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