From 1 July 2022 the superannuation guarantee rate will increase to 10.5%. The super rate is due to increase a further 0.5% each year until it reaches 12% in 2025. These increases have been legislated by the Australian Government.
From 1 July 2021, the concessional contributions cap is increased from $25,000 to $27,500. The increase is a result of indexation in line with average weekly ordinary time earnings (AWOTE).
From 1 July 2021, the Non-Concessional Contribution cap will increase from $100,000 to $110,000. Please note that if the superannuation balance is more than $1.6 million, the member cannot make any further Non-Concessional Contributions to the Fund as of 1 July 2017. If the account-based pension is commenced on or after 1 July 2021, their balance cap will be $1.7 million.
The High Court passed down its judgement on 15 June 2022 in the case of Hill v Zuda Pty Ltd regarding the validity of Binding Death Benefits Nomination. The High Court decided that an SMSF if the fund’s governing rules allow, can have a BDBN that does not lapse every three years and does not need to be witnessed by two people. These are two requirements of Retail and Industry Funds. To download the Supreme Court decision click on this link.
From 1 July 2022, the bring-forward rule cannot be applied on Members who are aged 75 or over. The maximum amount of non-concessional contribution for an individual aged 75 or over is $110,000 per annum. In addition, the work test must be met by the Member in order to make contributions to your SMSF. If the non-concessional cap is exceeded, Members may withdraw the excess amount from the Fund, otherwise the excess amount may be taxed at the marginal tax rate.
Members who are 60 years of age and above may be able to contribute up to $300,000 when they sell their home.