In an effort to help older Australians boost their superannuation balances, the government announced last night it intends to lift restrictions on their ability to contribute.
Currently, there are minimum work requirements for Australians aged 65 to 74 who want to make voluntary superannuation contributions.
Restrictions also apply to the bring-forward of non-concessional contributions. In addition, spouses aged over 70 cannot receive contributions.
None of these restrictions apply to individuals aged under 65.
In last night’s budget, the government announced that it intends to remove these restrictions and instead apply the same contribution acceptance rules for all individuals aged up to 75, from 1 July 2017.
“These changes will provide better incentives and more flexibility to all Australians to make superannuation contributions appropriate to their circumstances,” the budget papers said.
The move is being welcomed across the superannuation industry as one that will encourage independence in retirement. The SMSF Owners’ Alliance, for one, is praising the move as one of the “good news items” to come from the federal budget.
The measure has been long argued for by industry associations and representative bodies, including the Tax Institute in its pre-budget submission.
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