Draft legislation for other super measures introduced to Parliament
In addition to the ECPI choice of calculation measure and introducing the ‘work test’ for personal deductible superannuation contributions, Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, introduced to the lower house on October 27, 2021, included a number of other superannuation related matters.
These are discussed below.
Removing the monthly minimum superannuation guarantee threshold
Schedule 1 to the Bill amends the Superannuation Guarantee (Administration) Act 1992 (SGAA 1992) to remove the current $450-a-month threshold before an employee’s salary or wages count towards the Superannuation Guarantee. This will be achieved by repealing subsection 27(2) SGAA 1992.
Removing the $450-a-month threshold will expand the coverage of the Superannuation Guarantee to eligible employees earning salary or wages less than $450 in a calendar month from a single employer.
This change is to apply from 1 July 2022, provided the draft legislation receives Royal Assent prior to the start date. If Royal Assent occurs after 1 July 2022, it will apply from the beginning of the next quarter after Royal Assent.
First home super saver scheme maximum releasable amount
Schedule 2 to the Bill amends the Taxation Administration Act 1953 (TAA 1953) to increase the limit on the maximum amount of voluntary contributions made over multiple financial years that are eligible to be released under the First Home Super Saver Scheme from $30,000 to $50,000.
Voluntary contributions made from 1 July 2017 up to the existing limit of $15,000 per year will count towards the total amount able to be released.
This change is to apply to requests made on or after 1 July 2022 for the (ATO) Commissioner to make a First Home Super Saver determination.
Reducing the eligibility age for downsizer contributions
Schedule 3 to the Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to allow individuals aged 60 and above to make downsizer contributions to their superannuation plan from the proceeds of selling their home. Currently the eligibility age for downsizer contributions in 65.
The reduction to the eligibility age for downsizer contributions from 65 to 60 is to apply from 1 July 2022.
For further details on downsizer contributions, TechHub subscribers can refer to our technical article – Draft legislation ‘Downsizer contributions revisited’.
ECPI choice and ‘work test’ measures
The following two superannuation related measures were also included in the Bill:
- Work test reforms for superannuation contributions – refer to our separate Blog article on this measure ‘Repealing the work test for those aged 67-74- the first installment’.
- ECPI choice of calculation – refer to our separate Blog article on the measure ‘ECPI choice measure introduced to Parliament’.