New rules which came into force on July 1 will create opportunities for older Australians to boost their retirement savings and younger Australians to build a home deposit, all within the tax-efficient superannuation system.
WORK TEST CHANGES
From July 1, anyone under the age of 75 can make personal non-concessional or salary sacrifice super contributions without having to satisfy a work test. Annual contribution limits still apply and the work test still applies for personal contributions for which you claim a tax deduction.
All these measures still need to be passed by parliament and legislated.
DOWNSIZER CONTRIBUTIONS AGE LOWERED TO 60
From July 1, you can make a downsizer contribution into super from age 60, down from 65 previously.
The downsizer rules allow eligible individuals to contribute up to $300 000 from the sale of their home into super. Couples can contribute up to this amount each, up to a combined $600 000. You must have owned the home for at least 10 years.
RULES RELAXED, NOT REMOVED
As you can see, it’s complicated so if you would like to discuss how the new super rules might benefit you, please get in touch.