Beneficial Superannuation Legislation Passes Through Parliament

Posted on by Admin

11 February 2022

Last night (10 February 2022) legislation passed both houses to implement the bulk of the changes to superannuation announced in the federal Budget in May 2021..

This includes:

  1. Reducing the age where the downsizer contribution is available to 60
  2. Removing the work test up to age 75 for non-concessional contributions and salary sacrifice contributions (the work test still remains for personal deductible contributions)
  3. Extending the three year non-concessional contribution provisions to age 74
  4. Removing the $450 threshold for superannuation guarantee obligations on employers
  5. Providing choice with respect to the treatment of segregated current pension assets in a superannuation fund where there are instances in a financial year where 100% of the fund is in pension phase

All of the above measures will apply from 1 July 2022, save for the last one, which will apply for the 2021/2022 financial year.

Remember, the following will still apply for 2021/2022:

  1. Work test (40 hours of gainful employment in a consecutive 30 day period) between ages 67 and 75
  2. Single year non-concessional contribution limit for people aged between 67 and 75
  3. Downsizer contribution eligibility age of 65
  4. The three year non-concessional contribution is only available to those under age 67 at 1 July 2021
  5. Any non-concessional contributions are subject to the total superannuation balance provisions (this is also the case into 2022/2023)

Still to come

We are still waiting on legislation with respect to

  1. The definition of an Australian Superannuation Fund, whereby people overseas can set up and maintain an SMSF, as well as make contributions to that SMSF, without there being any compliance implications.
  2. The proposed two year amnesty to wind up legacy pensions. 

So, watch this space.

The Next Steps

If you would like further details or assistance with respect to any of the above changes, superannuation in general, or wish to have your position reviewed in light of the above, please contact our office on 08 6311 6900.

Jemma Sanderson
Director
Head of SMSF & Succession
Financial Adviser No:
001 000 382

Marissa Bechta
Director
Head of Taxation Advisory
Financial Adviser No:
001 000 438

Michelle Saunders
Managing Director
Head of Strategy
  Financial Adviser No:
001 000 435

This newsletter is current as of 11 February 2022, however, please note that announcements and changes are being made by the Government and the ATO regularly, and we expect that the tax and business-related responses will continue to evolve.  Before acting upon the content of this newsletter, please contact us to discuss how the above applies to your specific circumstances.

Cooper Partners Financial Services Pty Ltd AFSL 000 327 033

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