The following information is an overview of key areas which may impact superannuation in the coming year and beyond. Please note that these proposed initiatives are subject to legislation being passed. Full details of the proposals are not yet available, and we will provide you with full details and potential impacts when further details are made available.
There are three proposed changes to superannuation which is set to benefit older Australians who can afford to make additional voluntary superannuation contributions.
- People aged 65 and 66 may be able to make voluntary concessional and non-concessional super contributions, without meeting the work test.
The work test is a rule that states if a member is aged 65-74, they must be working in paid employment for a minimum of 40 hours in any 30 consecutive day period in order to make voluntary contributions to their super account.
- The ‘bring-forward’ rule, which currently allows those aged under 65 years to make three years’ worth of non-concessional contributions in one year can be extended to those aged 65 and 66. This will allow these people to make voluntary non-concessional contributions of up to $300,000 in a single year.
- Voluntary spousal contributions can be made by members up to age 74 which has been increased from the current cut-off of 69 years.
The Government is proposing a one-off Energy Assistance Payment of $75 for single pensioners and $125 for couples. The payment would be made this financial year.