2021 budget update
20 May 2021
In the 2021 Federal Budget, released on May 11 2021, the Government proposed a number of changes to superannuation that if passed may benefit BUSSQ members.
It is important to note that these changes are proposed to be introduced from 1 July 2022 and will only take effect if they are passed and legislated by Parliament.
Removal of $450 income minimum
Currently an employer is not required to pay super for an employee that earns less than $450 a month (before tax) unless an industrial agreement such as an EBA states otherwise.
The budget proposes to remove this minimum income requirement, meaning all employees regardless of their income will be entitled to superannuation guarantee payments.
Work test abolished for those aged 67-74 years old
The budget proposes to remove the work test, which requires those aged between 67 and 74 years to be gainfully employed for at least 40 hours over 30 consecutive days during the financial year before concessional and non-concessional superannuation contributions can be made.
This change will allow people aged 67 and 74 years to make or receive voluntary after tax contributions or salary sacrifice contributions without meeting the work test (subject to contribution caps). Members in this age bracket will still have to meet the work test to make personal deductible contributions.
Age limit lowered for downsizer scheme
The age limit for accessing the downsizer scheme is proposed to reduce from 65 to 60 years old.
This will give more people access to the scheme which allows you to put up to $300,000 ($600,000 for couples) from the sale of your home into your super account if you meet the eligibility criteria.
If you’re considering downsizing your home find out more about the downsizer scheme.
Increased savings limit for First Home Super Saver Scheme
Under this proposal the maximum amount you can save for your first home within super will increase from $30,000 to $50,000.
Learn more about how you can boost savings for your first home with the First Home Super Saver Scheme.
Two years to transfer from legacy pension and annuity products
Under this proposal the government will allow people to move their money from certain life-expectancy / lifetime pension and annuity products (commenced prior to 20 September 2007) into a more flexible income product within another superannuation fund.
We are here to help you
If you have any questions about these changes to super, proposed to be introduced in July 2022, please give our team a call on 1800 692 877.
More information is also available on budget.gov.au.
Source: budget.gov.au. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201). This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting, you should review the relevant Product Disclosure Statement to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional.