Fund Regulatory Update

$450 SG threshold removed, older Aussies can now save more

The Federal Government has decided to remove the $450 superannuation threshold, so lower-income earners can still be putting away funds automatically from income. Causal and part-time workers will now not miss out on important savings, particularly young people in early working lives, women and older people working fewer hours.

Older Australians are now able to contribute more to their superannuation with an expansion to the ‘downsizer scheme’ for those aged 60 and over, designed for greater superannuation savings and more family homes being put into the property market.

Work tests for contributions have been removed and the First Home Super Saver scheme (FHSS) has been extended to enable more voluntary contributions with associated deemed earnings to be withdrawn for a first home deposit. The FHSS scheme has been designed to avoid impacting the primary role of superannuation being for retirement.