How might your super be changing?
The Federal Budget 2021 announced a number of changes to superannuation. These changes have not yet been legislated. They include:
Expansion of the First Home Super Saver Scheme
The maximum withdrawal from the First Home Super Saver Scheme will increase from $30,000 to $50,000.
Abolishing the work test for retirees
The work test will be abolished on 1 July 2022. Under the change, retirees aged between 67 and 74 can top up their super without having to satisfy any test provided their super is less than $1.6 million, rising to $1.7 million in July 2022.
Expanding the Downsizer Scheme
The eligibility age for the Downsizer Scheme will be lowered from 65 to 60 years on 1 July 2022. The Downsizer Scheme allows eligible people who sell their home to make a one-off, $300,000 contribution to their super, outside the concessional and other rules. Couples can contribute $300,000 each.
Removing the $450 threshold for super contributions
The $450 monthly earnings threshold for superannuation contributions will be removed on 1 July 2022. Under the change, employers will be required to pay the superannuation guarantee on the wages of employees’ earning less than $450 per month. If you are under the age of 18, unless you are covered by a workplace agreement that states otherwise, you need to work more than 30 hours in a week. See here for further details.