Supercharged Super Budget
What a budget! Seldom has there been a budget which provides the opportunity for superannuation planning as this one. Too bad we will have to wait until the 2022-2023 year for the exciting stuff but at least we know it’s coming.
The work test, that arcane requirement for an individual to work for 40 hours in 30 consecutive days to be able to contribute to super, will be abolished for NCCs. This means that anyone under the age of 75 will be able to make personal non-concessional contributions irrespective of their employment situation.
The non-concessional bring forward provisions, currently available up to age 65, will be extended to the under 75s as well – subject to the usual caps of course.
Downsizer contribution age eligibility will be expanded from those over 65 to those over 60.
This will be an exciting time, but we will have to wait for the actual legislation to be passed and receive Royal Assent. It is, therefore, expected that these measures will not be operational until 1 July 2022. Keep your fingers crossed.
There are a couple of other budget measures of significance such as the relaxation of the residency rules and some good indications regarding legacy pensions, but I’ll mention them later.