New superannuation legislation the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 passed through Parliament last week. The bill gives effect to measures announced in the May 2021 Federal budget. Key details - which still will not apply until 1 July 2022 - of the Bill include:

  1. Extending the 3 year bring forward rule for non-concessional superannuation contributions to those under 75 years of age.
  1. Removing the work test for non-concessional member and salary sacrificed contributions made by individuals less than 75 years of age. (Note: the work test will still apply for personal or member concessional contributions)
  1. Removal of the $450 per month income threshold on employers. All salary and wages paid to any employee is now subject to the superannuation guarantee.
  1. Reducing the age from which one can make downsizer contributions to their superannuation fund, from the sale proceeds of their home to 60.
  1. Increasing the maximum realisable savings in a First Home Super Saver Scheme (FHSSS) account from $30,000 to $50,000.

This bill also provides greater choice and flexibility for trustees to choose the Taxation method, (segregated or proportional), where the fund has both retirement phase pensions and accumulation interests in the year which will help remove some regulatory costs. This measure will apply for the 2021-22 income year onwards.

For more information on the above contact Leanne Peacock.