Treasury shares details on bring-forward rules investordaily.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investordaily.com.au Daily Mail and Mail on Sunday newspapers.
The age at which the work test would apply for voluntary concessional and non-concessional superannuation contributions would increase from 65 to 67 and individuals aged 65 and 66 would be able to make up to three years of non-concessional superannuation contributions under the bring-forward rule.
The non-concessional contribution cap would increase from $100,000 to $110,000 from 1 July, 2021.
Graeme Colley, SuperConcepts executive manager, said: “The abolition of the works test between 67 and 75 for some contributions, mainly non-concessional ones, means if you are 67 then you can take your money out and put it back in if the rules allow. That’s an important change.
“This lets super for people over 65 use it like a ‘piggy bank’ where you put money in and get the tax concessions on that income, then when they need it they can drawdown a lump sum.”
Treasury confirms bring-forward age application smsfadviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smsfadviser.com Daily Mail and Mail on Sunday newspapers.
Major reforms to Australia's superannuation system passed through Parliament on Thursday. Treasurer Josh Frydenberg claimed the tweaks were the biggest in 30 years, and stand to save Australians $17.9 billion over 10 years.
Self-managed superannuation funds will be allowed to have up to six members and the SMSF Association has welcomed this change as it will provide additional flexibility and choice in the super system.