Super legislation changes 1 July 2022

15 March 2022

Employees salaries image

A number of changes to superannuation proposed in the 2021 Federal Budget have now been passed by Parliament and will take effect from 1 July 2022.

Removal of the $450 monthly income minimum
From 1 July 2022 the requirement for an employee to earn $450 per month (before tax) will be abolished. This means employers will have to make superannuation guarantee (SG) payments for all eligible employees regardless of their income. Employees will still need to meet the other SG eligibility requirements.

Employers will need to ensure their payroll and accounting systems are updated before 1 July 2022 for this change.

For more information on the removal of the $450 income minimum visit the ATO.

Age limit lowered for downsizer scheme
From 1 July 2022 the eligibility age for downsizer contributions will be reduced from 65 to 60. This will give more people the opportunity to contribute funds from the sale of their home into super.

The downsizer scheme allows eligible individuals to contribute $300,000 from the sale of their home into super and eligible couples to contribute up to $300,000 each from the sale of their home. Find out more about the downsizer scheme

Work test removed for those aged 67 – 74
Those aged 67 – 74 will be able to make and receive personal non-concessional contributions and salary sacrifice contributions without meeting the work test from 1 July 2022. However, if you are aged 67-74 you will still need to meet the work test or work test exemption to claim a tax deduction for personal non-concessional contributions.

People in this age bracket will now be able to access the bring forward option, which allows eligible individuals to make up to $330,000 in non-concessional contributions in a single year.

Find out more about making contributions, contribution limits and the work test

Superannuation Guarantee increase 
The minimum super an employer must pay their employees, the Superannuation Guarantee (SG) will increase from the current rate of 10% to 10.5% on 1 July 2022. Find out more about SG and employer contributions, or if you’re an employer learn more about your SG obligations.

First home super saver scheme limit increased
The First Home Super Saver Scheme allows you to invest more in your super to save for your first home. From 1 July 2022 the amount you can invest in super to save for your first home will increase from $30,000 to $50,000. 

Find out more about the first home super saver scheme.

Income account minimum payment limits - temporary reduction to continue
In the 2022-23 Federal Budget, released on March 29 2022, the government announced that the the temporary reduction of minimum annual payment amounts for Income accounts will continue. Income account holders will now have the option of choosing the below reduced minimum payment amounts until 30 June 2023. 

 Age Reduced minimum payment rate
(% of account balance)
 Under age 65 2%
 65 - 74 2.5%
 75 - 79 3%
 80 - 84 3.5%
 85-89 4.5%
 90 - 94 5.5%
 95 and over 7%

 

For more information on minimum payment amounts see our Income account PDS.

We are here to help you
If you have any questions about these changes to super, that will be introduced on 1 July 2022, please give our team a call on 1800 692 877.

 

This article provides general information only and does not take into account your personal financial situation or needs. Before acting, you should review the 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 obtain financial advice tailored for your personal circumstances. The Target Market Determinations for BUSSQ products can be found at bussq.com.au/forms-and-resources. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).



Related Topics