The government has recently brought in big changes to Superannuation to help Australians save more of their money. We’ve summarised the top six things you need to know to make the most out of your Super.

1. Changes to the Super Guarantee

The Super Guarantee (SG) rate has now increased from 10% to 10.5%. This means that employers will need to use this new rate when calculating employees Super, and payroll and accounting systems may need to be updated. The SG rate is scheduled to rise again (to 12%) by 2025 to allow more Australians to sufficiently save for retirement.

The $450 per month threshold for Super Guarantee has also been removed. If you’re an employer, we recommend that you provide newly eligible employees with a Standard Choice Form ASAP to ensure that you are fulfilling your responsibility to make their Super payments.

Workers under 18 will only be eligible for SG if they work more than 30 hours a week.

2. Abolishing the work test for older Australians

The work test was abolished on the 1st of July 2022. Legislation previously required people aged between 67-74 to work 40 hours or more within a month of the financial year to be able to contribute Super. Now if you are under 75, and have a Super balance less than $1.7 million, you can make non-concessional, or salary sacrifice contributions to your Super regardless of how many hours you work.

It is important to note that you will still need to meet the work test requirements if you want to claim tax deductions on your contributions.

3. Expansion of the Downsizer Scheme

If you are between the ages of 60 and 65, you are now eligible for the downsizer scheme. The Downsizer Scheme allows retirees to contribute up to $300,000 ($600,000 in total for couples) to their Super when they decide to sell their home.

Money that is transferred to Super after a home sale is included in the asset test for the Age Pension, but your principal residence will still be excluded.

4. Expansion of the First Home Super Saver Scheme

In this new financial year, the maximum Super withdrawal amount for first home buyers has increased from $30,000 to $50,000. The First Home Super Saver scheme allows Australians to save and grow money through their Super, which is taxed less than a regular bank account, so that they can afford to buy their first home.

The annual limit for voluntary contributions is still capped at $15,000 per financial year.

5. Changes to the Home Equity Access Scheme (HEAS)

Older Australians may now be eligible for the HEAS which was previously known as the Pension Loan Scheme. The HEAS allows retirees to use equity in Australian real estate to receive a voluntary non-taxable loan that is paid fortnightly or in a lump sum to increase their spendable income.

Recent changes now include a no negative equity guarantee on your HEAS loan which means you won’t have to pay more than the market value of your property when you settle your debt.

6. Changes Self-Managed Super Funds and Small Super Funds

Self-managed super funds and small APRA-regulated funds are now allowed to have a maximum of six members instead of only four.

Additionally, small super funds no longer need to obtain an Actuarial Certificate when calculating Exempt Current Pension Income and this allows more flexibility for eligible super trustees to choose the method of calculation that best suits their situation.

Superannuation is a section of Australian law and policy that constantly changes and evolves. Staying on top of the updates to Super is the best way to take advantage and grow your assets, but constantly keeping up can be a hassle. Let our lawyers handle it.

At Antunes Lawyers, we know Super, so you don’t have to. Our lawyers will provide advice that you can guarantee is up-to-date and is directly catered to your specific needs.

See how our Superannuation lawyers can help you today.

If you need informed legal advice on Tax and Superannuation, talk to Antunes.

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The articles on this website comprise legal general information and not legal advice. The general information presented here must not be relied upon without legal advice being sought. In the event that you wish to obtain legal advice on the contents of this general information you may do so by contacting our office or your existing solicitor.