Super changes in the 2021-22 Budget
Published on 21/05/2021
A number of changes to super were included in the federal government’s 2021-22 Budget and intended to be in place for 1 July 2022. Some key changes include to:
- abolish the threshold of $450 a month to receive compulsory employer contributions
- remove the work test for those between 67 and 74 to make salary sacrifice and non-concessional contributions
- expand the First Home Super Saver Scheme allow access to $50,000 in super voluntary contributions
- reduce the age to make downsizer contributions from 65 to 60
Click below to read more about each key change in the 2021-22 Budget
Abolish the $450 contribution threshold
The current requirement that individuals must be earning more than $450 a month to receive compulsory employer contributions (Superannuation Guarantee contributions) will be abolished on 1 July 2022.
Remove the work test
If you are between 65 and 74, you will no longer need to meet a work test to make salary sacrifice contributions or non-concessional super contributions. The current work test requires you to show you have been in gainful employment for at least 40 hours in any consecutive 30-day period in the financial year for which the contributions are made. For more information , see Budget 2021-22 Superannuation factsheet.
Expand the First Home Super Saver Scheme
Currently the amount of voluntary contributions that can be released from super under the First Home Super Saver Scheme (FHSSS) is $30,000. This will increase to $50,000. See the government’s Guaranteeing the essential services brochure. Your Product Disclosure Statement and Member Guide also explain how the FHSSS currently works.
Lower age for downsizer contributions
The government will reduce the age for people to make downsizer contributions from 65 to 60. Downsizer contributions are one-off super contributions of $300,000 (individual) or $600,000 (couple) following the sale of the family home which don’t count towards the concessional or non-concessional contributions caps. For more information see the see Budget 2021-22 Superannuation factsheet. Your Product Disclosure Statement and Member Guide also explain how downsizer contributions currently work.
Changes from 1 July 2021