What is and what is not changing on 1 July 2022

While a number of changes to Super and Social Security come into effect on 1 July 2022, recent announcements in the lead up to the Election are yet to be made law. It is important to understand what changes will and won’t take effect on 1 July, based on where we are today.

What is law?

The below changes are law and take effect from 1 July:

  • removal of the work-test from the SIS Regulations for those aged 67-74* for personal contributions and salary sacrifice contributions 
  • introduction of the work-test into tax law as additional eligibility criteria to claim a tax deduction for a personal contribution if aged 67-74* at the time the contribution is made 
  • extension of the bring-forward NCC rule to those aged less than 75 on 1 July
  • extension of the Downsizer contribution opportunity to those aged 60 or older at the time the contribution is made
  • increase to the amount that can be saved under the First Home Super Saver Scheme from $30,000 to $50,000, and
  • the Super Guarantee rate will increase from 10 to 10.5%.

*Contribution must be made within 28 days of the end of the month in which the person turns 75.

What isn't changing yet

In the lead up to the Election, the new Government made a number of announcements, including support for some of the proposals put forward by the previous Government. Some of these changes were proposed to commence from 1 July, however the required changes (including in some instances, passage of legislation) has not yet occurred to give effect to these announcements. 

This includes: 

  • extension of the Downsizer contribution opportunity to those aged 55 or over at the time a contribution is made 
  • changes to the income test thresholds for eligibility for the Commonwealth Seniors Health Card, and
  • freezing the deeming rates for social security recipients. 

Additional information

For more information, including client toolkits to support you in communicating these changes to clients, see the below resources:

More information

If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.

Disclaimer
The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.