As 30 June fast approaches, the focus usually shift towards ensuring strategies relating to managing taxation outcomes and superannuation are implemented before the end of financial year arrives. However, it is also important to look ahead, with some superannuation contribution rules changing from 1 July 2022. These changes could create new opportunities which may benefit you.
The key changes from 1 July 2022 include:
- increasing the amount of personal contributions that can be made to superannuation for people aged 67-74*
- removing the requirement to satisfy a work test before making personal after-tax contributions and salary sacrifice contributions for those 67 to 74*
- reducing the eligibility age for making a downsizer contribution from 65 to 60
- increasing the amount that can be released under the First Home Super Saver Scheme to use to purchase a first home, and
- removing the minimum monthly income threshold before an employer is required to pay Superannuation Guarantee on behalf of employees.
* Contributions must be received no later than 28 days after the month in which the person turns age 75.
While some of these changes will provide great opportunities from 1 July 2022, they could also impact end of year strategies you were planning on implementing.
These opportunities have a range of eligibility requirements so contact us to discuss how these changes impact your circumstances and opportunities that may exist for you.