Superannuation opportunities in 2022

TL;DR

Recent legislation changes in superannuation laws provide increased flexibility for contributions and withdrawals, benefiting individuals up to the age of 74.

Transcript

g'day and welcome to this week's video my name is robert gowdy and this week we're going to have a look at some of the superannuation legislation that's recently been passed and this was proposed in the 2021 budget and now has been passed and it will make quite a bit of superannuation um strategies a lot simpler provide a lot more flexibility for p... Read More

Key Insights

• 😄 Abolishing the work test requirement for contributions provides greater ease and flexibility for individuals up to the age of 74.
• 🧭 The changes enable recontribution strategies to reduce potential taxes on superannuation benefits passed on to non-dependents.
• 👻 Increased flexibility in non-concessional contributions and the bring forward rule allows for strategic planning and balancing out superannuation benefits between spouses.
• 👪 The downsizer legislation now has more flexible age eligibility and allows for preserving benefits through contributions after selling a family home.

Questions & Answers

Q: What was the work test requirement for contributing to superannuation prior to these legislative changes?

Previously, individuals over the age of 65 had to meet a work test, which required working for a minimum of 40 hours over a 30-day period to be eligible for contributing to superannuation.

Q: Do the legislative changes affect claiming tax deductions on superannuation benefits?

Yes, to claim a tax deduction on a superannuation benefit, individuals still need to meet the work test requirement.

Q: How do the changes impact recontribution strategies for retirees?

These changes provide retirees with greater flexibility for recontribution strategies, allowing them to withdraw taxable components from their superannuation fund and contribute them back into superannuation, potentially reducing taxes upon their passing.

Q: How do the changes affect non-concessional contributions and the bring forward rule?

The changes allow for increased flexibility in utilizing non-concessional contributions, with the maximum contribution limit raised to $110,000 per year. Additionally, individuals up to the age of 74 can use the bring forward rule to contribute up to $330,000 in a single financial year.

Summary & Key Takeaways

• The work test requirement for contributing to superannuation, which used to apply to individuals over the age of 65, has been abolished, allowing personal contributions without the need to meet this test.

• Contributions made after the age of 75 can be made within 28 days after the month the individual turns 75.

• The changes also allow for recontribution strategies to reduce potential taxes, increased flexibility in utilizing non-concessional contributions, balancing out superannuation benefits between spouses, and leveraging downsizer contributions.