Summary of Super Measures: February 2022
About the author:
- Author name:
- By Terri Bradford
- Job title:
- Head of Wealth Management
- Date posted:
- 11 February 2022, 9:00 AM
Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 has passed both Houses and is waiting Royal Assent.
The Changes
The Enhancing Superannuation Outcomes Bill contains the following measures:
-
Removing the monthly minimum threshold for salary or wages to count towards the superannuation guarantee
-
First home super saver scheme maximum releasable amount
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Reduced eligibility age for downsizer contributions
-
Repealing the work test for superannuation contributions
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Segregated current pension assets
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Extension of temporary full expensing of depreciating assets
The superannuation measures noted above will take effect from 1 July 2022.
Removing the monthly minimum threshold of $450
The Bill amends the Super Guarantee Act to remove the $450-a-month threshold before an employee’s salary or wages count towards the super guarantee. The relevant subsection 27(2) of the SGAA will be repealed.
This will expand the coverage of SG payments for eligible employees earning salary or wages that are less than $450 in a calendar month from an employer.
First home super saver scheme
The maximum amount of voluntary contributions made over multiple financial years that are eligible to be released under the First Home Super Saver Scheme will be increased from $30,000 to $50,000.
The amendment does not alter the limit on the amount of voluntary contributions from any one financial year that are eligible to be released (being $15,000).
That is, the maximum amount of voluntary contributions that are eligible to be released are $15,000 per financial year and $50,000 in total.
Reduced eligibility age for downsizer contributions
The amendments allow individuals aged 60 and above to make downsizer contributions to their super from the proceeds of selling their home. This provides greater flexibility for older Australians to contribute to their super.
However, unless the individual meets a nil cashing condition of release, funds must be preserved within the super account until such time he or she can meet a condition of release.
Section 292-102(1)(a) will be amended via regulations to allow for the reduction in age for this type of contribution to super.
Repealing the work test for super contributions
The Bill amends the ITAA 97 to allow individuals aged between 67 and 75 years to make salary sacrifice contributions to super without having to meet the 40-hour work test. The Bill also amends the ITAA 97 to allow individuals to make or receive non-concessional contributions (including under the bring forward rule).
Individuals aged between 67 and 75 who wish to make personal deductible contributions to super will still be required to meet the 40-hour work test.
If an individual makes a deductible contribution and is unable to meet the work test or access the ’12-month exception’ rule, the contribution will remain a non-concessional contribution on the basis that no deduction can be claimed for it.
The 28-day rule will still apply for individuals turning age 75. That is, the contribution must be received into the super account on or before the day that is 28 days after the end of the month in which the member turns 75.
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