Happy new financial year!
A quick reminder of the new superannuation measures which are effective as of 1 July 2022:
Increase in super guarantee percentage
From 1 July 2022, the super guarantee charge percentage is 10.5% for all contributions made from 1 July 2022 (previously 10%). The new increased rate of 10.5% applies to all contributions made from 1 July 2022 onwards, even if it relates to work completed prior to 1 July 2022.
Removal of $450 minimum threshold for super guarantee contributions
From 1 July 2022, all workers who meet the relevant definition of employee under the super guarantee legislation (noting that can include some contractors) must have super guarantee contributions made on their behalf by their employer, even where they earn less than $450 per calendar month.
Up until 1 July 2022, employers were not required to make super guarantee contributions on behalf of employees who earnt less than $450 per month.
Reduction in eligibility age for downsizer contributions
From 1 July 2022, individuals age 60 and over are now eligible to make downsizer contributions of up to $300,000 per person. Broadly, a downsizer contribution is a contribution referable to the proceeds of the sale of a main residence. While a downsizer contribution won’t be counted for an individual’s non-concessional contribution cap, it will form part of the tax free component in the fund (which presents a number of estate planning opportunities).
Up until 1 July 2022, the minimum age for making a downsizer contribution was 65.
Change to bring forward eligibility age
From 1 July 2022, individuals up to age 75 can make (subject to their total superannuation balance) up to three years of non-concessional contributions under the bring forward rule.
Up until 1 July 2022, the bring forward rule was only available to those under age 67.
Change to work test requirements
From 1 July 2022, individuals up to age 75 can make or receive personal super contributions and salary sacrificed contributions (subject to their contribution caps) without meeting the work test (but may still need to meet the work test to claim a personal super contribution deduction).
Up until 1 July 2022, individuals age 67 to 74 could only make or receive voluntary contributions to super if they met the work test, which broadly requires that you must work at least 40 hours over a 30-day period in the relevant financial year.
Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163
E: pbroderick@sladen.com.au
Philippa Briglia
Senior Associate
T +61 3 9611 0173
E pbriglia@sladen.com.au
Jan Oh
Graduate Lawyer
T +61 3 9611 0158
E joh@sladen.com.au
