We are happy to provide the following list of changes to Superannuation for the current 30 June 2022 financial year:
The concessional contribution cap has moved to $27,500, the cap was previously $25,000.
The non-concessional contributions cap has moved to $110,000, the cap was previously $100,000.
To make non-concessional contributions your total super balance at 1 July must be under $1,700,000.
The maximum amount of non-concessional contributions that can be brought forward into a current year is $330,000 (3 years x $110,000)
Further, to use the brought forward provisions members need to assess their total super balance in order to determine how much future year’s contributions they can bring forward using the below table:
|Total Super balance at 1 July||Non-concessional contributions|
cap for the first year
|Less than $1.48m||$330,000||3 years|
|$1.48m – $1.59m||$220,000||2 years|
|$1.59m – $1.7m||$110,000||1 year|
|$1.7m or more||$0||Not applicable|
The age a person must meet the work test at in order to make contributions into the superannuation fund has moved from 65 to 67.
To meet the work test, you must be gainfully employed for at least 40 hours during a consecutive 30-day period in the financial year in which the contributions are made.
This change also applies to the brought forward rules.
Carry-forward Concessional Contributions
This cap allows superannuation members to carry forward their unused contributions caps from prior years beginning from 1 July 2018, where their total super balance is under $500,000 at 1 July.
The maximum contribution that can be made under this cap is $75,000 (3 years x $25,000).
Transfer Balance Cap
The maximum amount of super an eligible member can have in pension phase has increased to $1,700,000.
This is an increase of $100,000 from the previous maximum.
For those who have already commenced retirement phase pensions, their entitlement to the increased amount will be determined by their highest ever transfer balance cap amount in proportion to the previous maximum cap of $1,600,000.
Annual Pension Minimum Drawdown
In line with previous Treasury announcements, the temporary halving of the minimum annual pension amount required to be drawn has been extended to the 2022 FY.
Maximum Number of Members in an SMSF
This has increased from a maximum numbers of members from 4 to 6 from 1 July 2021.
For further assistance please contact Daniel Shaw, SMSF Specialist Adviser and head of Superannuation of this office who can assist with your enquiries.
The information provided does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances.