Work test repealed for voluntary superannuation contributions
Date of effect – The first financial year after Royal Assent of the enabling legislation Expected to be 1 July 2022
Individuals aged 57 to 74 years will be able to make or receive non-concessional or salary sacrifice superannuation contributions without meeting the work test. The contributions are subject to existing contribution caps and include contributions under the bring-forward rule.
Currently, the ‘work test’ requires individuals aged 67 to 74 years to work at least 40 hours over a 30 day period in a financial year to be able to make voluntary contributions (both concessional and non-concessional) to their superannuation, or receive contributions from their spouse.
Personal concessional contributions will remain subject to the ‘work test’ for those aged between 67-74.
Expanded access to ‘downsizer’ contributions from sale of family home
Date of effect – The first financial year after Royal Assent of the enabling legislation Expected to be 1 July 2022
The eligibility age to access downsizer contributions will decrease from 65 years of age to 60.
Currently, downsizer contributions enable those over the age of 65 to contribute $300,000 from the proceeds of selling their home to their superannuation fund. These contributions are excluded from the existing age test, work test and the $1.7 million transfer balance threshold (but will not be exempt from your transfer balance cap).
Downsizer contributions apply to sales of a principal residence owned for the past ten or more years.
Sale proceeds contributed to superannuation under this measure will count towards the Age Pension assets test.
The amount of money you can transfer from your accumulation account into your …