With the change of government this year it is not expected that any significant changes will occur in Superannuation or Pension rules in the year ahead. That said there are a great many members that will benefit from the few planned changes that came into effect 1 July 2022. In particular increases to employer contribution rates and the removal of the threshold for employer contributions. Below is an overview of these changes, for more detailed information visit the ATO website.
Employer contribution rate increased to 10.5%
Previously 10%, the Superannuation Guarantee (SG) increased to 10.5% on 1 July 2022. This increase is the next in a planned series of increases to achieve 12% by 2025.
Removing the threshold for employer contributions
Removal of the $450 per month threshold means that anyone earning less than $450 per month from a single job will begin receiving super guarantee contributions from their employer from 1 July 2022
Contribution caps remain the same as last year
These are the annual limits on how much you can pay into super each year.
The concessional cap (before tax, salary sacrificed contribution) is $27,500
The non-concessional cap (after tax contribution) is $110,000
Div 293 tax threshold remains at $250,000
This is the additional tax on employer contributions for high income earners. In place since 2017 it is an additional 15% (total 30%) tax on concessional contributions.
Co-contribution rate remains at $500 but thresholds increase
Co-contribution is a government incentive matching individuals after tax contributions to super, dollar for dollar, up to a maximum of $500 for people with an income less than $42,016. The amount decreasing progressively until it cuts out when income reaches $57,016.
Low cap rate increase
This is the maximum lump sum a member under 60 who has reached their preservation age can take, the new rate is $230,000.
Transfer from Super to Pension
The general transfer balance cap remains at $1.7 million.
Super Capital Gains Tax Elections cap
Available to eligible members to contribute amounts that would otherwise be subject to CGT to super, the non-concessional contribution rate is now $1.65 million.
High income earners
The maximum super contribution base (the amount your employers is obliged to pay super on) increases to $60,220 per quarter.
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The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 [October 2022]