Super contributions work test exemption extended to age 66
From 1 July 2020, individuals aged 65 and 66 will be able to make voluntary superannuation contributions without needing to meet the work test. Currently individuals aged 65- 74 must work at least 40 hours in any 30-day period (work test)in the financial year in which contributions are made in order to make voluntary personal contributions. The proposed change will alight the work test with the eligibility for the Age Pension which is scheduled to reach age 67 from 1 July 2023.
Currently there is a 1 year exemption from the work test from 1 July 2019 for super contributions by recent retirees aged 65 – 74 with total superannuation balances less than $300,000. This was from the 2018-19 budget.
Spouse Contribution Age Limit Increase
The age limit for making spouse contributions will be increased from 69 to 74. Currently, those aged 70 and over cannot receive contributions made by another person on their behalf.
Exempt current pension income calculation to be simplified for super funds
Superannuation fund trustees with interests in both the accumulation and retirement phases during an income year will be allowed to choose their preferred method of calculating exempt current pension income (ECPI) of either the Segregated Method or Proportionate Method (obtaining an actuarial certificate).
The Government will also remove a redundant requirement for superannuation funds to obtain an actuarial certificate when calculating ECPI using the proportionate method, where all members of the fund are fully in the retirement phase for all of the income year.
Super insurance opt-in rule for low-balances - delayed start 1 October 2019
The Government confirmed that it will delay the start date to 1 October 2019 for ensuring insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under age 25.