Super changes in the 2021-22 Budget

A number of changes to super were included in the federal government's 2021-22 Budget and intended to be in place for 1 July 2022. Some key changes include to:

• abolish the threshold of $450 a month to receive compulsory employer contributions
• remove the work test for those between 67 and 74 to make salary sacrifice and non-concessional contributions
• expand the First Home Super Saver Scheme allow access to $50,000 in super voluntary contributions
• reduce the age to make downsizer contributions from 65 to 60

Click below to read more about each key change in the 2021-22 Budget

• Abolish the $450 contribution threshold

  The current requirement that individuals must be earning more than $450 a month to receive compulsory employer contributions (Superannuation Guarantee contributions) will be abolished on 1 July 2022.

• Remove the work test

  If you are between 65 and 74, you will no longer need to meet a work test to make salary sacrifice contributions or non-concessional super contributions. The current work test requires you to show you have been in gainful employment for at least 40 hours in any consecutive 30-day period in the financial year for which the contributions are made.  For more information , see Budget 2021-22 Superannuation factsheet.

• Expand the First Home Super Saver Scheme

  Currently the amount of voluntary contributions that can be released from super under the First Home Super Saver Scheme (FHSSS) is $30,000. This will increase to $50,000. See the government’s Guaranteeing the essential services brochure. Your Product Disclosure Statement and Member Guide also explain how the FHSSS currently works.  

• Lower age for downsizer contributions

  The government will reduce the age for people to make downsizer contributions from 65 to 60. Downsizer contributions are one-off super contributions of $300,000 (individual) or $600,000 (couple) following the sale of the family home which don’t count towards the concessional or non-concessional contributions caps. For more information see the see Budget 2021-22 Superannuation factsheet. Your Product Disclosure Statement and Member Guide also explain how downsizer contributions currently work.

Changes from 1 July 2021

• the superannuation guarantee contribution will rise from 9.5% to 10%
• the annual concessional contributions cap (limit) will increase from $25,000 to $27,500 See ATO website
• the non-concessional contributions cap will increase from $100,000 to $110,000 See ATO website.