With an election just around the corner, this year’s federal budget is expected to be lined with sweeteners. Even before the budget is delivered we have seen the Treasurer announce a boost for those closer to retirement (or in early stages of retirement) to be able to make both concessional and non-contributions into superannuation.
From 1 July 2020, the Government proposes to extend the current age from 65 to 67 before an individual is required to meet a ‘work test’ to make both concessional (CCs) and non-concessional contributions (NCCs). The reason for this is to align to the Age Pension changes which is scheduled to reach age 67 from 1 July 2023.
In addition, the Government will be:
- increasing the age limit from 69 to 74 for spouse contributions to be made into superannuation;
- extend the bring-forward rule for NCCs for those aged 65 and 66 years of age
You can find out more about this announcement in the Treasurer’s media release here.
Author: Aaron Dunn
Aaron is a well-known identity within the SMSF sector and is seen as a trusted source for professionals to learn more about SMSFs and the direction of the sector. Aaron's insights into both technical and practice-based issues within the SMSF industry sees him regularly sort out to participate as a key stakeholder across regulatory and policy issues.
Aaron was awarded the SMSF Association Chairman's Award 2023 for his outstanding contribution to the SMSF sector, having made a significant contributions to sector growth and sustainability, measured against the values of leadership and sustainability.
As an SMSF specialist and CPA with more than 25 years experience, Aaron is the CEO and Co-founder of Smarter SMSF, a specialist business that provides technology-based solutions to educate, automate and simplify the complexities of SMSFs to accountants, financial advisers.
A lover of sport, in particular AFL football (Essendon) and athletics, Aaron was previously a nationally ranked high jumper having set a personal best jump of 2.14m.
1 Comment