Increase your Super – Opportunities are arising mid-2022 

Recently there were some superannuation changes that received Royal Assent, meaning that they are now law and will come into operation on 1 July 2022.  These include:

  1. The $450 per month income threshold for making employer contributions is being abolished. This is a significant development for employers and casual/part time workers.  Further information can be found at [here]
  2. The ‘works test’ is being abolished for non-concessional contributions for individuals aged 67 to 75. However, it remains for concessional contributions. Also, individuals aged 67-74 will be able to bring forward three years’ worth of contributions. 
  3. The eligible age for making a ‘downsizer’ contribution is decreasing from 65 to 60.
  4. The maximum amount of voluntary contributions under the First Home Super Saver Scheme increases from $30,000 to $50,000.
  5. There will be changes to how trustees calculate Exempt Current Pension Income when there are members in both accumulation and pension phase for parts of the year.

Overall, for Super Fund members these changes are good news. They can also lead to further planning opportunities in relation to contributing into Superannuation. In this article we give examples of how changes 2 and 3 can open up opportunities.

Bringing forward Superannuation contributions for 67 to 74 year olds – and abolishing the work test.


  • David and Jenny had balances of $2,000,000 and $1,000,000 respectively in their Self-Managed Super Fund on 30 June 2021.  Both members are over 67 years old on 1 July 2021 (and under age 74). 
  • They have some money outside of super available to contribute into super in order to boost their retirement savings.

Under current rules:

  • David can no longer contribute to his super fund because his total super balance already exceeds over $1.7 million. (nor has he been able to contribute for several years for the same reason.)
  • Jenny has been unable to contribute for the last few years because she has retired and, not being ‘gainfully employed’  for 40 hours in a 30 day period, she does not meet the works test.

Under new rules from 1 July 2022:

  • Jenny will be able to contribute $330,000 of non-concessional contributions (the normal $110,000 limit x 3) without needing to meet a work test. 
  • Her balance needs to be below $1.48 Million at 30 June 2022 in order to put in the full $330,000, but we presume it was given it was $1 Million at 30 June 2021 and there were no contributions added in 30 June 2022 financial year.
  • But David is still unable to make contributions as his total super balance is over $1.7 million.

Downsizer Contribution age decreasing to 60. 


  • Both 61 years of age, John and Jill are strongly considering selling their home of 20 years in order to downsize. They both have total super balances that are over $1.7 million, so are unable to make any further after-tax contributions under the current rules. 

Under current rules:

  • Under the current downsizer scheme requirements, they would only be able to contribute up to $600,000 in total of the proceeds ($300,000 each) into superannuation and that would be when they are 65 years old in 4 years’ time.
  • Because of this, John and Jill would usually just wait (frustratingly) another 4 years before selling. They would do this to take advantage of the existing rules, and they would have to ride market risks and potentially compromise their desired lifestyle.

Under new rules from 1 July 2022:

  • Because the age eligibility is decreasing to 60 on 1 July 2022, John and Jill are now able to sell their home. And provided settlement is after 1 July 2022, they can contribute up to $600,000 out of the proceeds into their super fund, as long as they do so within 90 days of settlement.

Please note: As part of all this a form needs to be given to the receiving superannuation fund, notifying them that the contributions have been done under the downsizer scheme. You will also need to ensure all other conditions for accessing the downsizer scheme are met before going ahead with any contributions. Please contact your local Accru office for further information.

About the Author
Nick Petaroudas , Accru Melbourne
Nick joined Accru Melbourne in 2011 and has 13 years’ experience working in public practice servicing clients in the business services area. Over these years Nick has put a particular focus on becoming a specialist in the superannuation area which is his passion.
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