The Morrison government introduced into Parliament the Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021, which will improve flexibility for Australians preparing for retirement, support more Australians to own their first home and help Australian businesses invest.
The bill also reduces costs and simplifies reporting for SMSFs and small APRA‑regulated funds.
Superannuation Minister Jane Hume said the bill supports the repeal of the work test for non‑concessional and salary sacrificed contributions, which will be implemented through regulation changes the government intends to make before the end of the year.
“The legislation introduced today preserves the work test for personal deductible contributions made by individuals aged between 67 and 75,” she said.
“It will also make amendments necessary to allow eligible individuals to make non‑concessional superannuation contributions under the bring‑forward rule. This will improve flexibility for older Australians to contribute to their superannuation.
“Australians will be able to take advantage of these changes from 1 July 2022.”
In addition, the legislation reduces costs and simplifies reporting for superannuation funds by providing choice for superannuation fund trustees for the 2021‑22 income year onwards.
Trustees will now be able to use their preferred method of calculating exempt current pension income where the fund is fully in the retirement phase for part of the income year but not for the entire income year.
The eligibility age to make downsizer contributions into superannuation will also be reduced from 65 to 60 years of age.
This will allow more older Australians to consider downsizing to a home that better suits their needs, freeing up the stock of larger homes for younger families.
The government is also delivering on a key commitment in the Women’s Budget Statement by removing the $450 per month income threshold under which employees do not have to be paid the superannuation guarantee by their employer.
“This will remove a structural discrimination that has been part of the superannuation system since 1992, improve equity in the superannuation system and increase the economic security of women in retirement,” Ms Hume said.
“The maximum amount of voluntary contributions that people are able to release under the First Home Super Saver Scheme (FHSSS) will increase from $30,000 to $50,000, empowering more Australians to save effectively for their first home deposit.”
The bill and explanatory material are available on the Parliament of Australia website.
Yes, the ‘policy’ is now very confusing. The 2007 changes were about ensuring super was built up over a working life and restricting movement of non-super investments into super with NCCs caps, now that’s all out the window.
Is having SG on wages of $450 a month and lower a good thing? Someone earning $400 a month will now only receive $360, with the rest going to super. I’m more than happy to be corrected and hear this is a good thing. My concern though is the shrill cries for this measure as part of gender equity in super have resulted in a bad policy. Calling for equity is fine, but that doesn’t make every idea to achieve that goal a good idea.
SGC is on top of wages. Only contract workers negotiate packages that are all inclusive. A wage and salary earner on $400 per month will be entitled to $40 in SGC
Oh, and you the employers won’t adjust wages?
They won’t be able to if the employee is on minimum wage, which the change has been created for
How does reducing the age from 65 to 60 allow more pleople to downsize into super when you are reducing the pool of houses eligle? Is this a typo or is the government trying to force people to downsize?
There’s no change to the type of houses that are eligible. The only change is a lowered age condition.
Why do they need to remove the work test for salary sacrifice contributions ? Surely if you are earning a salary you are most likely able to meet the work test.
[b]Please do something useful Ms Hume and get rid of the work test for ALL super contributions. [/b]
Ms Tinker at the bloody edges and do Nothing useful Hume.
So frustrating these LNP clowns of Frydenberg & Hume, all puff & wind and no substance yet again.
The regulations change mentioned in the article will remove the work test for all super contributions. From 1 July 2022, if you’re 67-74, the work test is only relevant if you want to claim a deduction.
Yep exactly as you say, it DOESN’T remove the work test for Personal Deductible Super Contributions.
So please explain how the regulations remove the work test for ALL super contributions ?
Somehow you are saying that a Personal Deductible Super Contribution is not a super contribution ??? WTF
Only a political staffer, some patsy of Hume or Ms I tell Lies Hume could say such RUBBISH.
Calm down. The regulations will change to remove the work test. Once they are in force, nothing will stop someone under 75 making a contribution. If you’re 67+, there will be a work test if you want to claim a deduction for said contribution. You can either accept that as friendly advice or continue your rant to someone who’ll listen.
Spoken like a true politician.
Every time you open your mouth it’s a Lie.
Personal Deductible Super Contributions, are exactly as their title says a bloody super contribution.
Keep telling your Lies that All super contributions will be exempt from the work test and as per usual, you Pollie types even try to believe your own obscene BS.
Why not try telling the truth for once.
Have a lie down.
But super was always about replacing earnings from work as the human machine wears out. It was never a property investment vehicle.