Enhance your Superannuation: How New Legislation Impacts Your Retirement
Retirement planning often takes a back-seat to life, but the newly passed legislation relating to superannuation in Australia is worth paying attention to this year. We’re taking a look at what the changes are, when they take effect, and how they create opportunities for you to improve your financial situation through well-thought-out planning and contributions.
Parliament has recently passed the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021. This new bill comes with significant and important changes to superannuation.
These changes include:
The income threshold of $450 per month for Superannuation Guarantee (SG) contributions has been removed. This amendment relates to the Superannuation Guarantee (Administration) Act 1992 and means that an employee’s salary or wages are no longer subject to a threshold before the SG applies.
It also increases the maximum voluntary contribution allowable for release via the First Home Super Saver Scheme. Now, this contribution limit for “voluntary contributions made over multiple financial years” has been raised from $30,000 to $50,000.
Individuals between 67 and 75 can now make non-concessional superannuation contributions – this applies under the “bring-forward” rule.
The work test for non-concessional and salary sacrificed contributions has been rescinded for particular age groups – it is no longer applicable for individuals between 67 and 75.
Trustees may now choose their method to calculate exempt pension income for funds that are within both the accumulation and retirement phase for an income-tax year. This applies for the 2021-22 tax year ongoing.
These legislative changes will come into effect from 1 July 2022 onwards.
With forward-thinking and timely retirement planning, these legislative changes could have a net positive effect on your retirement finances. We recommend taking some time to understand and adjust your superannuation planning for the coming tax year.
How can Halkin Business Partners help?
Our tax planning specialists can assist you in understanding the upcoming changes to superannuation legislation and adjust your retirement planning accordingly. Maximise your retirement outcomes with Halkin Business Partners.
