There are a host of positive changes to superannuation rules starting today (1 July 2022) which may assist you boosting your superannuation retirement savings tax effectively. A summary of the main changes are outlined below, and if you ned any further detail on any of the changes and related strategies then please chat with your adviser.
From 1 July 2022, clients aged 67 to 75 will not need to meet a work test (or apply the work test exemption) to make:
However, individuals aged 67 to 75 wishing to claim a tax deduction for personal contributions must still meet the work test (or be eligible to apply the work test exemption).
All other eligibility criteria continue to apply, including the total super balance (TSB) limits and contribution caps.
Individuals aged under 75 on 1 July of a financial year will be able to make non-concessional contributions (NCCs) using the bring-forward rule to make after-tax contributions greater than the annual NCC cap.
Extension of the bring-forward rule for older Australians, in conjunction with the removal of the work test, will provide opportunities to take advantage of several variations of the recontribution strategy.
All other eligibility criteria continue to apply, including the TSB limits and contribution caps.
The eligibility age for downsizer contributions will reduce rom 65 to 60 on 1 July 2022. This will allow eligible individuals to utilise proceeds from the sale of their home (up to $300,000 per person or $600,000 per couple) to boost retirement savings.
Other eligibility criteria, including entitlement to the main residence exemption and 10-year ownership period, remain unchanged.
From 1 July 2022, there will be a percentage rate for the Super Guarantee (SG) from 10% to 10.5%. The annual CC cap is unchanged at $27,500 (noting that your actual concessional cap may be higher if eligible for catchup contributions).
Eligible employees (including casual and part-time employees) who earn less than $450 per month will receive SG from their employer if other
If you are unsure how these changes may impact you and your strategy then please book a chat with one of our financial advisers.
Pete is the co-founder and oversees the investment committee for Pekada. He is a qualified financial planner with 14 years of experience. Based in Melbourne, Pete is on a mission to help everyday Australians achieve financial independence and the lifestyle they dream of. Pete has been featured in Australian Financial Review, Money Magazine, Super Guide, Domain, American Express and Nest Egg.