Super changes for older Aussies now in effect

More older Australians can now make voluntary contributions to their super.

senator jane hume

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 201920 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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    COMMENTS

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    Karl Marx
    2nd Jul 2020
    11:15am
    Should allow super contributions from 65 & up, not 65 & 66. Won't help most with being stuck with next to nothing interest rates from banks etc
    Golden Oldie
    2nd Jul 2020
    1:27pm
    I agree. Sold my home and within 6 months or so there was talk of being able to put extra from sale of house into super. Missed out by a few years when the final legislation became law. Excess funds in saver accounts and term deposits do not create a livable income supplement. Young persons are aided with miniscule interest rates and rebates to enter the housing market. Oldies are completely forgotten. 1/01/2017 from Abbots budget removed a large number off the part pension, current pension is lagging cost of living, and interest rates are at an all time low. Any lower, and it will cost you to keep money in savings accounts, knowing full well that the banks will lend your money to other people and get a return on that.
    Muttonbird
    2nd Jul 2020
    3:05pm
    Why don't they let people put money into super at whatever age we like? Don't they want older people downsizing? Contributions flexibility would be an incentive. They can still keep their upper limits on total super. I just don't get it.
    McDaddy
    2nd Jul 2020
    11:33am
    This Bill has yet to pass the House of Reps.
    Sundays
    2nd Jul 2020
    1:37pm
    Yes it has as of 1 July
    McDaddy
    2nd Jul 2020
    4:08pm
    The part about bringing it forward hasn't it seems
    https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6538
    Brissiegirl
    2nd Jul 2020
    12:26pm
    Damned if I know why the government put a restriction on older downsizers being able to put the balance of funds realised into superannuation if they hadn't lived in their recently sold home for 10 years. There's probably plenty of people want to downsize who only lived in their home for a time less than 10 years. Can't rationalise that one. Whoever thought it up must have been taking something.
    Karl Marx
    2nd Jul 2020
    12:33pm
    From seeing what comes out of the governments of late I am under the impression that most of the governments think tanks are kids on work experience
    KSS
    2nd Jul 2020
    1:16pm
    If you haven't lived in your home for 10 years it is no longer considered your permanent place of residence. Just like those who own property here but live permanently overseas. You can have 6 years but after that it is considered an investment not your home.
    Karl Marx
    2nd Jul 2020
    2:41pm
    KSS, centrelink will class your family home as an asset under the asset test if you are out of the country for more than 6 months of the year.
    That's why many expats with homes only stay out of the country for 25 weeks of any year. Also as of yesterday if you're out of the country for more than 6 months then decide to sell the family home you are now subject to capital gains tax, but here's the kicker, it's back dated from the day of purchase not from when you left the country.
    McDaddy
    2nd Jul 2020
    4:12pm
    Karl Marx, this isn't correct, Centrelink determine your continuing rate of payment for the Pension after you have been OS for more than 26 weeks consecutively. Your home does not automatically become an asset.
    Karl Marx
    2nd Jul 2020
    5:06pm
    McDaddy, this is what I was told at a centrelink seminar that was chaired by a centrelink financial advisor
    McDaddy
    2nd Jul 2020
    8:41pm
    That's ok Karl, you just misheard them. I can 100% assure you that if you stay overseas past 26 weeks, your home does NOT become an asset.
    KSS
    3rd Jul 2020
    4:14pm
    Karl Marx, if you stay out of the country for more than 6 weeks your penion nd other benefits may bee affected (e.g no supplemets) but it is more than 6 years for for your home to be considered not your premanent residence. And that goes for anyone working overseas and no where near pension age or claiming any Centrelink payments.
    Sundays
    2nd Jul 2020
    1:37pm
    Thank you YLC for being n the ball. I double checked with my Super,fund and the Bill has now been passed. I was waiting for this as I have a small window of opportunity to contribute.
    Tzuki
    2nd Jul 2020
    2:22pm
    I missed out being able to do this by 8 months- if only it was last year. Why don't they backdate it :)
    sunnyOz
    2nd Jul 2020
    4:51pm
    Yes - I am in the same situation - but miss out by 2 months! I cannot see the logic in restricting it to just 65 & 66 year olds. Does the government think other seniors couldn't find this helpful?
    I missed out on any child care rebates, first home owners schemes, family tax benefits A&B, increased Newstart (got shafted from my job 18 months before going onto Aged Pension - had to use allot of my super to simply keep the roof over my head). I missed out on the Pensioner Bonus Scheme - my brother got it and boy was it a help. When the govt increased super contributions to the $50,000, I worked hard, retrained, and got a better job - only for the govt to slash it back 8 months into the job. Now this.
    I am a frugal saver/spender, and would love to put some of my extra dollars into my super account instead of the miserly bank.
    Gramerbel
    2nd Jul 2020
    4:06pm
    To Golden Oldie- I agree with your comments about the banks and the interest rates. My husband and I are self funded retirees so receive no pension. My husband is now in a nursing home and I have to pay extra for him to be there. The income I receive from the bank is virtually zero and my superannuation is going downhill rapidly since the Coronavirus catastrophe. The income I receive is about $400 - $500 per month more than I have to pay for my husband. I then have to pay bills, living expenses which means that I am dipping into my savings (bank or superannuation). I am worried that I may have to eventually depend on a pension, having been someone who has been independent. I’m sure that I am not the only one who is in this position, there must be a lot of us out there. My thoughts are with all of you who have been affected.
    Eddy
    2nd Jul 2020
    4:17pm
    Is this something 'new' or just a recasting of restrictions previously in place. Sounds to me not significantly different to the restriction previously in place.
    Sundays
    2nd Jul 2020
    5:12pm
    Eddy, the difference is you don’t have to pass a work test to contribute until you turn 67 which is the new eligibility age for the age pension. In my case, not working it is an opportunity to move a little into super before I turn 67 in September.
    Eddy
    2nd Jul 2020
    5:29pm
    Best of health and life in your retirement Sundays but all 'they' have done is update the legislation to align with the 'new' retirement age. That hardly seems like an 'improvement' to me just a realignment.
    sunnyOz
    2nd Jul 2020
    4:45pm
    WHY just the 2 years of 65 & 66? I have just turned 67 - why should I be discriminated against?
    I just cannot see the logic in this - once again, discrimination.
    Rae
    5th Jul 2020
    9:32am
    Superannuation is just a vehicle for investment in shares, bonds, property and cash. You can do it yourself by setting up the same balance options in a cheap cost passive index fund vehicle. And there are no government rules to bother you except for declaring to the ATO once a year the income which is untaxed under $32000 for a single and $58 000 a couple.

    It is no more complicated than a superannuation vehicle.

    Bit like using your own car instead of taking a taxi.
    jan
    2nd Jul 2020
    8:46pm
    Allowing some people to take out some of their supper after loseing their jobs the government needs away to take it back, and hopfuly those who have money at 65 can put it back. Not me.
    Harleynt
    11th Jul 2020
    4:19pm
    I will inherit a reasonable sum of money, I will be be 72 in november and my wife will be 67 in August, what benefit (assuming i can do this) will i have in placing say $100,000 in my wifes super account which she hasnt yet changed into income account


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