Super Changes from 1 July 2022 are now legislated

Some great news, a number of the proposed super changes from last year’s budget has been passed by parliament and are now legislated.

These measures will take place from 1 July 2022 and include:

  • The minimum age threshold for downsizer super contributions has been reduced to 60 (from 65);
    • If you are planning on selling your home and have owned it for over 10 years, please speak to us about how you can take advantage of this if you are over 60.
  • Individuals between 67 and 75 can now take advantage of the NCC bring-forward rule.
    • This means that if your total super is below the general transfer balance cap of $1,700,000, you can bring forward 3 years of Non-Concessional Contributions and put in $330,000 in 1 hit.  There are some restrictions so it’s always best to chat first.
  • Removal of the work test for non-concessional and salary-sacrifice (but NOT personal deductible) contributions for individuals aged between 67 and 75;
  • Removal of the $450 threshold for employers to make SG contributions, which increases to 10.5% next financial year, and
  • The maximum contribution release under the First Home Super Savers Scheme will increase to $50,000 up from $30,000.

With these changes comes a lot of opportunities if you are over 67 and have funds outside super that you’d like to contribute.  However as with any changes, there is the fine print, so before you jump in and make some changes, please chat with us to ensure it is viable for you.

Plus, as we head towards June 30, there are concessional contributions of up to $27,500 including SG that can be made.

The utilisation of the carry-forward arrangements for concessional contributions for any unused cap since 1 July 2018.  To use your unused cap amounts you must meet 2 conditions:

  • Your total super balance at the end of 30 June of the previous financial year is less than $500,000.
  • You made concessional contributions in the financial year that exceeded your general concessional contributions cap.

Unused caps are available for a maximum of five years and will expire after that.

Make sure you speak to one of the advice team at JBS Financial to see how these strategies can work in your favour. Reach out to us here.

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