An individual who is in receipt of an account-based pension (or similar product) must draw a minimum amount from the superannuation fund each financial year to ensure the pension standards in the superannuation laws are satisfied.
Removal of the $450 per month income threshold
From 1 July 2022, the $450 per month income threshold under which employers do not need to make superannuation guarantee contributions for employees will be removed (legislation was passed on 28 February 2022).
Employers will therefore be required to make superannuation guarantee contributions on behalf of all employees, irrespective of their level of remuneration.
Work Test reforms
From 1 July 2022, the Work Test will be removed for individuals aged 67 to 75 years in relation to non-concessional and salary sacrificed superannuation contributions. The Work Test will still apply for personal deductible (concessional) contributions.
Until 30 June 2022, an individual who is 67 to 74 years of age can only make voluntary superannuation contributions if they have has been gainfully employed for at least 40 hours over a 30-day period in the applicable financial year (known as the “Work Test”).
From 1 July 2022, the eligibility age for the Downsizer Contribution will be reduced from 65 years to 60 years of age.
The Downsizer Contribution measure allows an eligible individual to contribute a once-off lifetime amount of up to $300,000 in their superannuation fund from the proceeds of the sale (or partial sale) of their home. The Downsizer Contribution does not count towards the individual’s non-concessional contribution cap, and can be made even where the individual has a total superannuation balance of more than $1.7 million.
Improved visibility of superannuation assets in family law proceedings
From 1 April 2022, the ATO will be able to share information with the Family Court of Australia or the Family Court of Western Australia (the Courts) on superannuation assets held by parties during family law proceedings. Individuals, or their legal representative, can apply directly to the Courts.
These measures empower the Commissioner to disclose superannuation information held by the ATO to the Courts, who them provide the information to the parties in the family law proceedings.
First Home Super Saver Scheme
From 1 July 2022, the maximum amount of voluntary contributions that can be released under the First Home Super Saver Scheme (“FHSSS”) will increase from $30,000 to $50,000.
The FHSSS was first introduced from 1 July 2017 to provide individuals with the ability to save money for their first home using the benefit of concessionally taxed superannuation.