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.