The registering of Treasury Laws Amendment (Enhancing Superannuation Outcomes) Regulations 2022 has provided the final piece to the contributions puzzle that will start from 1 July 2022.
The budget measures announced a range of contribution changes, with the greatest interest arguably in the removal of the ‘work test’ for voluntary contributions from subregulation 7.01(3). Whilst removed from the SIS regulations, the work test may still apply for the purposes of claiming a deduction in accordance with subsection 290.165 (1A) of the ITAA 1997.
Read previous blog post, ‘key budget measures pass parliament to become law’ for more information about the changes announced in the 2021-22 Federal Budget.
SIS Regulation amendments
These amendments now provide for a much simpler SIS Regulation 7.04(1) as can be seen in the table below:
|Item||If a member…||The fund may accept contributions in respect of the member that are:|
|1||Is under 60||a) Employer contributions; or
b) Member contributions
|2||Is not under 60, but is under 75||a) Employer contributions; or
b) Member contributions (incl. downsizer contributions)
|3||Is not under 75||a) Mandated employer contributions; or
b) Downsizer contributions
It should be noted that SISR 7.04(1A) allows for up to 28 days after the end of the month where member turns age 75 to make voluntary contributions – i.e. non-mandated employer contributions (salary sacrifice) and member contributions, other than downsizer contributions.
The finalisation of these measures provides some much needed certainty around contribution planning for SMSF (and superannuation) clients.