Federal Budget – Superannuation Update

By Janet Spencer

On Tuesday evening the Federal Government Budget proposed some new laws surrounding superannuation contributions for Australians.

Women and Superannuation

You may be interested to know the following:

• Contribution restrictions lifted on 65 and 66-year olds
• Under proposed new laws announced in last night’s Federal budget, Australians aged 65 and 66 will be able to make voluntary super contributions without meeting the current work test. 65 and 66-year-olds would be able to make voluntary superannuation contributions without being required to work at least 40 hours in every 30 days to be eligible to contribute.They would also be permitted to make three years’ worth of non-concessional (after tax) contributions to their super accounts per year, which are currently capped at $100,000 a year. At the moment, only people under 65 (or who have turned 65 in the financial year) may be able to access those arrangements.
• Increased access to spouse contributions

The Government also intends to increase the age limit for spouse contributions from 69 to 74. At the moment, people aged over 70 can’t receive contributions made by someone else on their behalf. However, they will still need to meet the work test if aged over 66.

Why is this important for Buyer Solutions clients? We work as Vendor Advocates frequently for clients who are selling their home to eliminate debt or have no mortgage. They often want to put large sums into their superannuation to fund retirement. For example, if you sell for 2 million dollars and buy your downsize home for 1 million dollars, you may wish to put a large chunk of this money into your superannuation fund.

As we have an ageing population, I think these initiatives are a good move.  Although I hope personally to work less as I age, I love my job and may wish to keep consulting as a Buyers Agent for as long as I am healthy.  Putting more money not less into superannuation is surely a good thing.

Buyer Solutions does a lot of work for investors buying property and owning it in their Self Managed Super Fund.  If you would like to find out more about this service for your a family member or friend, don’t hesitate to contact me at info@buyersolutions.com.au  or on +61 3 9816 8555

Buyers Advocate, Janet Spencer, Superannuation

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