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Retirement

Flexing in the new financial year: Super system to see changes

  • June 30 2020
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Retirement

Flexing in the new financial year: Super system to see changes

By Grace Ormsby
June 30 2020

The federal government has confirmed that it will continue to improve the flexibility of the superannuation system by enabling more voluntary contributions by older Australians.

Super system to see changes

Flexing in the new financial year: Super system to see changes

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  • June 30 2020
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The federal government has confirmed that it will continue to improve the flexibility of the superannuation system by enabling more voluntary contributions by older Australians.

Super system to see changes

Regulations now in force mean that from tomorrow, 1 July, Australians who are aged 65 and 66 can make voluntary concessional and non-concessional contributions without meeting the work test.

A statement from senator Jane Hume, who is the assistant minister for superannuation, financial services and financial technology, confirmed the changes, which will also allow people up to the age of 75 to receive spouse contributions.

The changes were first announced in the 2019-20 budget as part of the “Superannuation – improving flexibility for older Australians” measure.

Parliament is still considering changes to Treasury Laws, which would allow people aged 65 and 66 to make up to three years of non-concessional contributions under the bring-forward rule.

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Ms Hume said, “The Morrison government is conscious that systems must be sufficiently flexible to allow individuals to save for their retirement, through life’s ups and downs.”

She added that “these changes will allow more Australians to boost their savings as they near their retirement”.

In another statement just released, Assistant Treasurer Michael Sukkar highlighted that the reduction of red tape for superannuation funds that was set to be introduced on 1 July 2020 has been pushed back due to the COVID-19 crisis. This will now commence on 1 July 2021.

Mr Sukkar also observed that a planned increase to the maximum allowable members in self-managed superannuation funds and small APRA funds from four to six has also been pushed back.

The original start date will be revised from 1 July 2019 to Royal Assent of the enabling legislation.

More to come. 

Flexing in the new financial year: Super system to see changes
Super system to see changes
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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