A legislative change that came into effect on 1 July means that more older Australians will be able to make voluntary contributions to their superannuation when they are in a position to do so.
The change means that it is now possible for people aged 65 and 66 to make voluntary concessional and non-concessional contributions to their superannuation without meeting the work test.
Another change also allows people up to age 75 to receive spouse contributions.
The changes were announced as part of the 2019–20 Federal Budget, as part of the Superannuation – improving flexibility for older Australians measure.
Another change in this package – to allow people aged 65 and 66 to make up to three years of non-concessional contributions under the bring-forward rule – is still being considered by parliament.
The assistant minister for superannuation, Senator Jane Hume, said the changes were an important step towards delivering flexibility in retirement.
“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,” Senator Hume said.
“These changes will allow more Australians to boost their savings as they near their retirement.”
On Tuesday, the government also announced that a number of superannuation and taxation measures had been delayed due to the shortened parliamentary sitting period in 2020 caused by COVID-19.
The reductions of red tape for super funds that was set to be introduced on 1 July 2020 has been pushed back to 1 July 2021, while a planned increase to the maximum allowable members in self-managed super funds and small APRA funds from four to six has also been pushed back.
Are you in a position to take advantage of these changes to the superannuation legislation? Do you think parliamentary sitting days should be reduced when most other people have returned to work during the COVID-19 crisis?
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