changes to super from July 1 2022 | Wilson & Assoc Chartered Accountants

Changes to super from July 2022

https://www.wilsonassoc.co/frequently-asked-questions-on-super-contribution-caps/For the most part, super laws remain the same.  But changes that are to take effect from July 1 2022 may open up new opportunities for you. 

The key changes include:

Reducing the downsizer contribution eligibility age to age 60.

The eligible age previously 65, has now been reduced to  60.  That means more home owners aged 60 or older can contribute up to $300,000 into their super from the proceeds of selling their main home.

Find out more, including eligibility rules, in our downsizer contribution FAQ.

Partially removing the work test for those aged 67 to 75.

The work test required people to be employed for at least 40 hours over 30 consecutive days during a financial year.

From 1 July 2022, people over the age of 67 and under 75 years of age will no longer need to meet a ‘work test’ when making or receiving before-tax and after-tax contributions.

Note that the work test will still apply to 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 and putting more into your super account, read our article on Frequently Asked Questions on  Super Contribution Caps. 

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 FAQ.

Removing the $450 threshold to receive super contributions.

Previously, employers generally only needed to pay super contributions for employees who’re paid $450 or more per month.

From 1 July 2022, employers need to make super contributions for eligible employees regardless of how much they’re paid. 

Also from 1 July 2022, the amount of super employers are required by law to pay into your account will increase from 10% to 10.5%.

More information

If you have any questions about these changes or about super in general, speak to our friendly team on 1300 233 288, or email to service@wilsonassoc.co

About Wilson & Assoc

Wilson & Assoc Chartered Accountants provides taxation and business advisory services to individuals, investors and businesses wherever you are based. We provide specialist services to startups and health care providers.

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Disclcaimer: The information provided within this article is general information only.  None of the comments in these notes are intended to be advice, whether legal, financial product or professional. You should obtain specific advice regarding your particular circumstances from a tax or legal professional.

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