Budget 2019: New rules for superannuation
More flexible rules for making top-up payments to be introduced.
In a measure previewed before the official budget release, Australians who are 65 or 66 will be allowed to make additional voluntary superannuation contributions without having to meet work-test requirements. They will also be allowed to make three years' worth of non-concessional contributions in a single year. The current annual cap on non-concessional contributions is $100,000, meaning that $300,000 could be added into super in a single year.
This isn't allowed under current rules, which require at least 40 hours of work over a 30-day period in the relevant year (the "work test") and restrict concessional access to those under 65. Making the change could result in lower tax rates on those contributed amounts.
The age limit for spousal contributions will also be lifted from 69 to 74.
Who will this affect?
The changes will impact people born in 1954 or 1955, and will potentially allow them to put more money into their superannuation accounts as they near full retirement.
When will the changes happen?
If legislated, the changes will take effect from 1 July 2020.