Changes to super this new financial year
Let’s get you all caught up on what's changing come 1 July 2022.
06 Jun 2022
Changes to Government Co-Contributions for low income earners
If you are a low-to-middle income earner, the Australian Government may help boost your super savings through the super co-contribution payment.
If you meet the eligibility criteria, the government may make either a low income contribution or co-contribution to your super, depending on your circumstances.
You do not need to apply for government contributions. The government will assess if you’re eligible once they receive your tax return, and apply them if applicable.
Saving for your first home using your super
If eligible, you can now contribute up to $50,000 into your super to save for your first home.
From July 1 2022, the changes to the First Home Super Saver Scheme mean that eligible customers can make voluntary contributions into their CSC account of up to $50,000, with a max contribution rate of $15,000 per financial year.
Benefits of using your super to save for a house include:
- Mandatory savings - you cannot withdraw the funds until you are ready to purchase a house
- Compound interest - your voluntary contributions will earn interest in your super which may increase the total you can withdraw when you access your funds for purchasing a home
To find out more about the First Home Super Saver Scheme and check on your eligibility:
Changes Work Test and Bring Forward Rules
From 1 July 2022, those aged between 67 and 75 will no longer need to meet the work test for salary-sacrifice or personal after-tax contributions, however the work test will continue to apply to anyone who wants to make a contribution and claim a tax deduction for it.
Eligibility* to make non-concessional (after-tax) contributions under the bring-forward rules will be extended from those aged 67 at the start of a financial year, to those aged 75.
These are super contributions made from after-tax income or savings. The limits are:
- Three times the annual non-concessional contributions cap over three years (or $330,000) if the total super balance on June 30 of the previous financial year is less than $1.48 million.
Twice the annual cap over two years (or $220,000) if the total super balance on June 30 of the previous financial year is above $1.48 million and less than $1.59 million.
- There is an annual cap of $110,000 if the total super balance on June 30 of the previous financial year is between $1.59 million and $1.70 million.
* Those with a super balance of $1.7 million or more are not eligible. An individual must be 74 or under at some time during the financial year to be eligible to trigger the bring-forward rule. Someone aged 74 on July 1 of the relevant year must make a contribution within 28 days after the end of the month that they turn 75 to use the cap.
Changes to contributing to your super using the sale of your house
The eligibility rules for downsizers to top up super with a $300,000 contribution have changed.
- The minimum age for downsizer contributions has been reduced from age 65 to 60, effective from 1 July 2022.
- Downsizer contributions do not count towards your contribution cap and are not restricted by other contribution eligibility criteria like the Total Superannuation Balance.