Directors' Column

Superannuation changes

Financial wellbeing is a key contributor to overall wellbeing, and it is only prudent to make the most of the opportunities available to us. Following on from announcements made in last year’s federal budget, there is new superannuation legislation that may be of benefit to some of our members from 1 July this year.

$450 minimum threshold scrapped

Currently employees do not receive super where they do not earn $450 in a month. From 1 July 2022 this rule is scrapped and employers must pay super on your behalf regardless of the amount you earn. Great for parttime and low income workers. If this relates to you, speak to your employer.

First Home Super Saver

For those wishing to buy their first home, the total amount that can be contributed to the First Home Super Saver Scheme has been increased from $30,000 to $50,000.

Work test scrapped

From 1 July the work test for those aged between 67 and 75 is gone. You will no longer have to work 40 hours in a 30 day period to be able to make salary sacrifice or after tax contributions to super.

The downsizer booster age has been reduced

For those who sell a property they have lived in for more than 10 years and at some point it was your primary place of residence, you can contribute up to $300,000 to super. From 1 July, access to this opportunity has been reduced to age 60, regardless of how much you have in super. Also, people over the age of 75 can access this opportunity if they have less than $1.7m in super.

There are also new rules about bring forward contributions for those with a balance of less than $1.7m.

If you think you may be eligible for some of these opportunities, please speak to our Financial Planning team.