Frydenberg unveils Budget super tweaks
The Government has included further superannuation policy tweaks in tonight’s Federal Budget with the Treasurer, Josh Frydenberg confirming that from 1 July, next year, people aged 65 and 66 will be able to make voluntary superannuation contributions without meeting the work test.
The Treasurer said that, additionally, the Government would also be increasing the age limit for spouse contributions from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.
Frydenberg’s announcement made the point that, currently, people aged 65 and 66 could only make voluntary contributions to superannuation if they met the Work Test, which requires that they work a minimum of 40 hours over a 30-day period.
“This means that Australians aged 65 or 66 years who don’t meet the work test, because they may only work one day a week or volunteer, will now be able to make voluntary contributions to their superannuation,” his announcement said. “This will align the Work Test with the eligibility age for the Age Pension, which is scheduled to reach 67 from 1 July 2023.”
The statement said that, additionally, the Government would increase the age limit for spouse contributions from 69 to 74 years where currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.
“We will also extend access to the bring-forward arrangements, which currently allow those aged less than 65 years to make three years’ worth of non-concessional contributions, which are capped at $100,000 a year, to their super in a single year. This will now be extended to those aged 65 and 66.”
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
