INTHEBLACK August 2022 - Magazine - Page 52
F E AT U R E
// S U P E R A N N U AT I O N C H A N G E S
The removal of the work test opens the opportunity for people
aged under 75 to use the three-year bring-forward rule to make
non-concessional contributions into their superannuation
account up to the maximum of A$330,000.
INCOME YEAR
AMOUNT OF CAP
2022-2023
A$1.650.000
2021-22
A$1.615.000
2020-21
A$1.565,000
2019-20
A$1.515.000
2018-19
A$1.480,000
2017-18
A$1.445,000
2016-17
A$1.415,000
2015-16
A$1,395,000
2014-15
A$1.355,000
2013-14
A$1.315.000
2012-13
A$1.255.000
2011-12
A$1.205.000
2010-11
A$1.155.000
2009-10
A$1.100.000
2008-09
A$1.045.000
2007-08
A$1.000.000
52 ITB August 2022
The work test is satisfied if a person can
prove they were gainfully employed for
40 hours during a consecutive 30-day period.
LIFTING THE BRING-FORWARD
RULE AGE
The removal of the work test opens the
opportunity for people aged under 75 to use
the three-year bring-forward rule to make
non-concessional contributions into their
superannuation account up to the maximum
of A$330,000.
However, those using the bring-forward
rule still need to comply with ATO
provisions around the total super balance
and the A$1.7 million transfer balance cap
governing the amount of super that can be
transferred into the retirement phase.
LOWER AGE FOR DOWNSIZER
CONTRIBUTIONS
The eligibility age to take advantage of
the home “downsizer” measure has been
lowered from 65 to 60. People aged 60 and
above who comply with a range of other
eligibility conditions will be able to add up
to A$300,000 – couples up to A$600,000
– into their super from proceeds of their
principal place of residence.
A downsizer contribution forms part of
the tax-free component of people’s super. It
can be made in addition to non-concessional
super contributions and doesn’t count towards
their personal super contribution limit.
It can be made even if the total super
balance is more than A$1.7 million.
LEGACY RETIREMENT PRODUCT
CONVERSIONS
For two years, individuals will be able
to move their superannuation from a
specified range of restrictive outdated
pension products to more flexible retirement
income choices.Legacy products covered
include life expectancy, marked-linked and
lifetime offerings that were started before 20
September 2007 from any provider, including
self-managed superannuation funds.
Not covered are flexi-pension and lifetime
products from Australian Prudential
Regulation Authority-regulated or public
sector defined benefit schemes.
HIGHER PRESERVATION AGE
The minimum age for individuals to access
super if they’re retired or want to commence
transition to a retirement income stream
has increased from 58 to 59 for those born
between 1 July 1963 and 30 June 1964.
INCREASING THE LOW RATE CAP
The limit set on the amount of taxable
components (taxed and untaxed) of a super
lump sum that can receive a lower (or nil) rate
of tax changed from A$225,000 to A$230,000.
It applies to members who have reached
their preservation age but are below 60 years
of age.
INCREASING THE UNTAXED PLAN CAP
The untaxed plan cap amount, which limits the
concessional tax treatment of benefits that have
not been subject to contributions tax in a super
fund, has increased from A$1.615 million to
A$1.65 million. It applies to each super plan
from which a person receives super lump sum
member benefits and is used to calculate the
excess untaxed rollover amount.
Like the low cap rate, the untaxed plan
cap amount is indexed in line with average
weekly ordinary time earnings in increments
of A$5000 (rounded down).
HIGHER CO-CONTRIBUTION THRESHOLDS
Income thresholds for individuals eligible for
a government superannuation co-contribution
payment, up to a maximum of A$500 per
year, have increased.