Super changes from July 2022

Super Informed
Super and policy news
Retirement
31 Mar 2022
3 min read

The government has recently passed legislation that will alter some of the rules for super. Take a look at what’s changing on 1 July 2022.

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Removing the $450 per month minimum income threshold

The government will remove the $450 per month minimum income threshold to receive Super Guarantee (SG) contributions. This will allow an estimated 300,000 low-paid workers—63% of whom are women—to be eligible to receive mandatory employer super contributions.

Start date: 1 July 2022

Increased threshold for First Home Super Saver (FHSS) scheme

The government will increase the maximum amount of voluntary contributions that aspiring first home buyers can take from the FHSS scheme to $50,000.

This scheme allows people to make voluntary contributions to super to save for their first home. These contributions are currently capped at $15,000 a year and $30,000 in total.

Under the changes, contributions into a super fund will be allowed up to a maximum of $50,000 in total, but still capped at $15,000 a year. For couples, both individuals will be able to utilise their caps up to a maximum of $100,000 combined.

This scheme relates to voluntary contributions only. First home buyers can’t withdraw any part of their compulsory super savings (super contributions made on their behalf by their employer) under the scheme.

Start date: 1 July 2022

Work test abolished for those aged 67 to 74

The government will abolish the work test, which currently requires 67 to 74-year-olds to be gainfully employed for at least 40 hours (over 30 consecutive days during the financial year) before making concessional or non-concessional contributions.

This will allow these individuals to make or receive non-concessional (including under the bring-forward rule) or salary sacrifice contributions without meeting the work test—subject to existing contributions caps. They’ll still have to meet the work test to make personal contributions which they intend to claim a tax deduction for.

The existing $1.7 million total super balance cap will continue to apply to non-concessional contributions.

Please note: the $1.7 million total super balance cap is subject to future indexation in increments of $100,000.

Start date: 1 July 2022

New eligibility age threshold for downsizer contributions

Retirees who downsize their family home will be able to contribute up to $300,000 to super ($600,000 for couples) from the sale proceeds from age 60, down from age 65. These contributions won’t count towards the non-concessional contributions cap or the total super balance cap of $1.7 million.

Start date: 1 July 2022

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