12 Sep Super changes starting July 2022
By Ali Roshan
Several legislative changes to super will commence on July 1, 2022. Now is a good time to investigate how this can be an advantage to you.
1. The work test rules
If you, from July 2022, you’ll be able to make non-concessional contributions to your super, without meeting the work test. The work test will only be required if claiming a tax deduction for your personal contribution.
2. Bring-forward arrangements extended
The bring-forward rules are designed so you can contribute to your super early. Your total three-year non-concessional contribution cap ($110,000 per year) can be contributed over a shorter period, either all at once or as several larger contributions.
This bring-forward arrangement will be available if you’re under 75 at the start of the financial year in which you’re contributing. For example, you’d need to be 74 or younger on July 1, 2022, to be eligible for the full bring-forward amount in the 2022/23 financial year. If eligible, you can contribute up to $330,000 to superannuation in a single financial year.
The maximum you can contribute will also depend on your Total Superannuation Balance (TSB) being below $1.48m on June 30, 2022. Then if TSB is between $1.48 and $1.7 million, the available cap will reduce as follows:
3. Non-concessional contributions if you turn 75 in June 2022
If you’re turning 75 in June 2022, there is an opportunity for you to make a non-concessional contribution of up to $110,000 between July 1 and July 28, 2022, subject to your TSB being below $1.7m on June 30, 2022.
This is because superannuation funds can accept personal contributions even after your 75th birthday, provided the contribution is made no later than 28 days after the end of the month in which you turn 75. So, if you turn 75 in June 2022, you have until July 28, 2022, to contribute to your super.
4. Downsizer contribution eligibility age reduced
If you have reached the eligible age, and meet the eligibility criteria*, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home, into your superannuation fund.
From July 2022, the eligible age is 60 or older. Before this, you needed to be 65 or older at the time of contribution.
If you have any questions or would like to find out more about anything superannuation related, please feel free to call on +61 3 9066 0400.
Ali Roshan is an Authorised Representative (ASIC No. 000378611) of Lifespan Financial Planning
ABN 23 005 921 735 AFSL Number 229892
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