As we head towards the finish line for the 2022 financial year, it is a good time to consider the new rules coming into effect on 1 July 2022 and to make sure you're ready.
How will they affect you and your self-managed super fund - or how will they affect your business?
For self-managed superannuation funds
From 1 July 2022 you might be able to increase your account balance by:
- remembering that the Government halved the minimum pension requirements for the 2022 and 2023 financial years. This means you may only have to withdraw half of what you would otherwise; so you can leave more money in your super fund.
- being able to contribute up to $300,000 to your fund, from the sale of your home, as the 'downsizer contribution' will be able to be made if you are 60 years or older (down from 65),
- being able to make concessional contributions, without having to meet the work test, if you are aged between 67 and 74. This will make it easier for you to increase your super balance.
- using up to three years' worth of your non-concessional contribution caps (i.e. by bringing forward two years' worth of caps) if you are aged between 67 and 74 - also making it quicker and easier to increase your account balance.
For businesses and employees
If you operate a business, you will need to be prepared. From 1 July 2022 the cost of employing staff will increase due to:
- The superannuation guarantee increasing from 10.0% to 10.5% from 1 July 2022 and
- The $450 monthly income threshold being removed altogether. Regardless of how much an employee earns, they will be entitled to receive the superannuation guarantee payments.
We also suggest you act now to ensure your software will cater for these changes.
