{"id":1235,"date":"2022-07-05T05:17:48","date_gmt":"2022-07-05T05:17:48","guid":{"rendered":"https:\/\/actinvest.com.au\/?p=1235"},"modified":"2022-07-05T05:17:49","modified_gmt":"2022-07-05T05:17:49","slug":"super-contribution-changes-starting-1-july-2022","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/super-contribution-changes-starting-1-july-2022\/","title":{"rendered":"Super Contribution Changes starting 1 July 2022"},"content":{"rendered":"<p>From\u00a0<strong>1 July 2022<\/strong>, there will be changes made to super to make it easier for Australians to grow their retirement savings.<\/p>\n<p><img loading=\"lazy\" alt=\"\" height=\"317\" src=\"https:\/\/acctweb.com.au\/images\/fp-super-con.jpg\" width=\"475\" \/><\/p>\n<p><strong><em>These include:\u00a0<\/em><\/strong><\/p>\n<ul>\n<li>Partially removing the work test for those aged 67 to 75.<\/li>\n<li>Extending the non-concessional contributions bring-forward age limit to age 75.<\/li>\n<li>Reducing the downsizer contribution eligibility age to age 60.<\/li>\n<li>Increasing the maximum First Home Super Saver Scheme withdrawal amount to $50,000.<\/li>\n<li>Removing the monthly minimum threshold for Superannuation Guarantee (SG) Contributions.<\/li>\n<li>Giving greater choice and flexibility to super fund trustees in choosing the taxation method (segregated or proportional) for their fund within a tax year.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p><strong><em>Partially removing the work test for those aged 67 to 75<\/em><\/strong><\/p>\n<ul>\n<li>From 1 July 2022, the existing work test will no longer be required for individuals aged 67 to 75 who make or receive voluntary super contributions. This includes salary sacrifice contributions, non-concessional contributions (NCCs), contributions made under the Small Business CGT concessions and personal injury\/compensation\/structured settlement contributions.<\/li>\n<li>The work test or recent retiree exemption will still be required for individuals in this age range who wish to claim a tax deduction for their personal contributions. From 1 July 2022, the work test can be met in any period in the financial year of the contribution i.e. having worked 40 hours within 30 consecutive days.\u00a0<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p><strong><em>Extending the non-concessional contributions (NCCs) bring-forward age limit<\/em><\/strong><\/p>\n<ul>\n<li>The bring forward age restriction will be extended to\u00a0<strong>age 75<\/strong>.\u00a0<\/li>\n<li>There is no tapering off and the full bring-forward non-concessional cap will be available up until age 75. This means that from 1 July 2022 onwards, a person\u2019s last opportunity to trigger the NCCs bring-forward provisions is the financial year in which they turn age 75 (i.e. they are still age 74 on 1 July of the year).<\/li>\n<li>Existing restrictions on the full availability of bring forward contributions will continue to apply to individuals with Total Super Balance over $1.48 million (in 2022-23).<\/li>\n<\/ul>\n<p style=\"margin-left:47.25pt\">\u00a0<\/p>\n<p>So that means you can make a super contribution of up to $330,000 in one year if you are aged 75 or younger instead of making $110,000 per financial year for 3 years. This can be used in addition to the downsizer super contribution detailed below.\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><strong><em>Downsizer super contributions<\/em><\/strong><\/p>\n<ul>\n<li>The downsizer super contribution age minimum will be reduced from age 65 to 60.<\/li>\n<li>There is no upper age limit.\u00a0<\/li>\n<li>The $300,000 maximum downsizer contribution amount and other eligibility requirements will remain unchanged such as having a total super balance of less than $1.7M<\/li>\n<\/ul>\n<p style=\"margin-left:47.25pt\">\u00a0<\/p>\n<p><strong><em>First Home Super Saver (FHSS)<\/em><\/strong><\/p>\n<ul>\n<li>The maximum amount that can be released under the First Home Super Saver Scheme (FHSS) is being increased to $50,000.<\/li>\n<\/ul>\n<p style=\"margin-left:47.25pt\">\u00a0<\/p>\n<p><strong><em>Continued superannuation pension payment minimum reduction<\/em><\/strong><\/p>\n<ul>\n<li>The 50 percent reduction in minimum income payments will continue for the 2022\/2023 financial year.<\/li>\n<li>Term allocated pension reductions will also be extended for any clients that request it for another 12 months until 30 June 2023.<\/li>\n<\/ul>\n<p>If you\u2019d like more information on how any of these changes may impact you personally please contact a Prudentia Financial Planning adviser &#8211; click here.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From\u00a0<strong>1 July 2022<\/strong>, there will be changes made to super to make it easier for Australians to grow their retirement savings.<\/p>\n","protected":false},"author":1,"featured_media":1236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1235"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=1235"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1235\/revisions"}],"predecessor-version":[{"id":1237,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1235\/revisions\/1237"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/1236"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=1235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=1235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=1235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}