Several recent legislative changes to super will commence on 1 July 2022. It may be a good opportunity to check whether you can take advantage of any.
Aged between 67 and 75?
From 1 July 2022, you’ll be able to make non-concessional contributions to your super, without having to meet the work test. The work test will only be required if you wish to claim a tax deduction for your personal contribution.
The bring-forward rules are designed so you can contribute to your super early. Your total 3-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. As an example, you’d need to be aged 74 or younger on 1 July 2022 to be eligible to take advantage of the full bring-forward amount in the 2022/23 Financial Year. If eligible, you’ll be able to 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 30 June 2022. If your TSB on 30 June 2022 happens to be between $1.48 and $1.7 million, the available cap will reduce as follows:
|TSB on 30 June 2022||Non-concessional cap amount|
|< $1.48 million||$330,000|
|$1.48 million to < $1.59 million||$220,000|
|$1.59 million to < $1.7 million||$110,000|
|$1.7 million and above||$0|
If you’re turning 75 in June 2022, there will be a small window of opportunity for you to make a non-concessional contribution of up to $110,000 between 1 July and 28 July 2022, subject to your TSB being below $1.7m on 30 June 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. This means if you turn 75 in June 2022, you would have until 28 July 2022 to contribute to your super.
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 1 July 2022, the eligible age is 60 years old or older. Prior to this, you needed to be 65 or older at the time of contribution.
For those still working, the minimum monthly income threshold of $450 that is currently applied to Superannuation Guarantee (SG) contributions will be abolished from 1 July 2022. In addition, the rate of SG will increase from 10% to 10.5% of ordinary time earnings.
If you’re looking to purchase your first home, the maximum amount of voluntary contributions that can be released from super to purchase your first home will increase from $30,000 to $50,000 on 1 July 2022.
If you have any questions or would like to find out more about anything superannuation related, give us a call.
 Amounts contributed must be received no later than 28 days after the end of month in which you turn 75.
The purpose of this website is to provide general information only and the contents of this website do not purport to provide personal financial advice. JourneyNest strongly recommends that investors consult a financial adviser prior to making any investment decision. The contents of this website does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.