Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 449

Valuable super contribution changes are now law

Several valuable superannuation changes that affect an individual’s ability to contribute to super, particularly those age 67 to 74, are now law with effect from 1 July 2022.

The Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 received Royal Assent on 22 February 2022.

In this article I review the major changes that will assist many individuals grow their super from 1 July 2022.

Remove the Super Guarantee $450 income threshold

Since the introduction of the Super Guarantee (SG) system in 1992, employers have not been required to pay SG contributions for employees who earn less than $450 in a calendar month.

From 1 July 2022, the $450 income threshold will be removed, and employers will be required to pay SG contributions for all employees regardless of income.

However, there are no changes to the SG exemptions for minors. Contributions are not required for employees under age 18 who work less than 30 hours per week, regardless of their monthly income.

This will see an increase in the super savings of many individuals particularly those who have multiple part time jobs.

Employers will need to ensure that their payroll systems are updated to deal with the changes from the first SG payment cycle after 1 July 2022.

Extension of the non-concessional contribution bring forward rule

From 1 July 2022, access to the non-concessional contribution bring forward rule will extend to individuals who are age 74 or less on 1 July of a financial year. Currently the bring forward arrangements are only available to individuals age 67 or less.

All the other eligibility requirements for accessing the bring forward arrangements remain unchanged. Individuals must have a total superannuation balance at the previous 30 June of under $1.48 million to be eligible for a three-year bring forward period and contribute up to $330,000 of non-concessional contributions. Individuals must have a total superannuation balance at the previous 30 June between $1.48 million and $1.59 million to be eligible for a two-year bring forward period and contribute up to $220,000 of non-concessional contributions. They must also not currently be in a bring forward period.

Individuals with a total superannuation balance at the previous 30 June between $1.59 million and $1.7 million cannot use the bring forward rule but can contribute up to $110,000.

Non-concessional contributions cannot be made if the total super balance at the previous 30 June is at least $1.7 million. These thresholds are subject to indexation.

This measure may provide the opportunity for individuals to bolster their superannuation savings from money currently held in less tax effective environments outside of super.

It may also provide individuals with the opportunity to improve their estate plans if they expect their superannuation death benefit will be paid to adult children. By withdrawing monies from super and recontributing non-concessional contributions individuals may increase the tax-free component of their account. This may result in lower tax on death benefits.

Individuals should seek professional advice in implementing these types of strategies.

Changes to work test requirement

As part of the contribution changes, the Government announced that superannuation rules will no longer require an individual age 67 to 74 to meet a work test to be able to contribute to super. There will continue to be no work test requirement to receive SG or Award contributions. These measures require changes to superannuation regulations, which do not require Parliamentary approval and we expect them to be made shortly.

Individuals age 67 to 74 will be able to make non-concessional contributions or salary sacrifice contributions without meeting the work test.

Importantly however, the tax laws have been updated to make meeting the work test a continued condition for eligibility to make a personal deductible contribution. There is no change to the work test definition, individuals must work 40 hours in 30 consecutive days in the financial year in which the contribution is made.

This means that individuals age 67 to 74 who do not meet the work test will not be able to make a personal deductible contribution to offset a realised capital gain.

Increases for release under the First Home Super Saver scheme

The limit on voluntary contributions made over multiple financial years that are eligible to be released under the First Home Super Saver (FHSS) scheme will be increased from $30,000 to $50,000 (plus associated earnings).

For more information on the changes to the FHSS scheme see our recent article at Firstlinks - FHSS scheme.

Reduced minimum age for downsizer contributions

From 1 July 2022, the minimum age at which an individual is eligible to make a downsizer contribution is reduced from 65 to 60.

This will provide additional opportunities to access the downsizer contribution concession for those who sell a home after age 60.

All the other downsizer eligibility criteria remain unchanged including the requirement for the contribution to be made within 90 days of receipt of the sale proceeds. This means that there may be an opportunity for individuals who are between age 60 and 65 who sell their home between mid-April and 30 June 2022 to make a downsizer contribution in 2022-23.

For more information on the eligibility criteria for making a downsizer contribution see our previous article at Firstlinks - downsizer contributions.

Exempt current pension income

In addition to the changes to contribution rules, there is a change in the law for how SMSFs can calculate exempt current pension income (ECPI). From the 2021-22 financial year, SMSF trustees will be able to choose their preferred method of calculating ECPI where not all of the interests in the fund are in retirement pension accounts for part, but not all of the year. This includes funds that have a transition to retirement income stream or an accumulation account.

Trustees will be able to choose to obtain an actuarial certificate to calculate the ECPI for the whole year, which is often a simple solution. Alternatively, they may be able to use the actuarial certificate for only the parts of the year where the fund held both accumulation and retirement pension accounts and use the actual income for the parts of the year that the fund held 100% in retirement pension accounts.

Depending upon the timing of transactions during the year, either methodology may provide a higher ECPI amount.

For more information on the best option for an SMSF, it is recommended that trustees consult the fund’s actuary, financial adviser or accountant.


These recently legislated changes provide opportunities for individuals to start planning their eligibility and capacity to increase their superannuation retirement savings from 1 July 2022, until age 75.


Julie Steed is Senior Technical Services Manager a Australian Executor Trustees. This article is in the nature of general information and does not consider the circumstances of any individual.


March 20, 2022

Thank you Julie. Understanding Exempt current pension income is somewhat challenging for me. Would you be able to give an example of how it works just highlight the principle ?

Julie Steed
March 24, 2022

Hi Albert,
As a general rule, investment returns earned on assets that support accumulation accounts (and transition to retirement pensions) are taxed at 15%. However, investment returns earned on assets that support retirement phase pensions are tax free. This tax-free income is called exempt current pension income (ECPI).
If a fund is 100% in accumulation phase, all of the investment returns are taxable. If a fund has 100% in retirement phase pensions all of the investment returns are exempt/tax-free.
Where a fund has a mixture of accumulation and retirement phase pension accounts the fund's actuary generally is required to calculate the ECPI percentage. This is often called the proportionate method. The formula is the average of the assets supporting pension liabilities during the period divided by the average assets supporting the total superannuation liabilities during the period.
If the actuary determines the ECPI percentage to be 75%, then 75% of the investment returns are exempt/tax-free and 25% will be taxed at 15%.

Helen Drew
March 19, 2022

I am 78 and still working part-time, earning $150 per week. Will I be eligible for the contribution, or will the fact that I'm over 75 mean the super need not be contributed for me? (Bit silly, I know, given my age!)

Julie Steed
March 24, 2022

Hi Helen,
There is no maximum age for super guarantee payments so you will receive super guarantee on all income below $450 from 1 July 2022. Prior to 1 July 2013 only employees under age 70 were eligible.
The $450 limit is per calendar month. Any months that you have earned $450, super guarantee should be payable.
Also, from 1 July 2022, the super guarantee rate increases to 10.5%.
(And it's never silly to care about super!)

Julie Steed
March 14, 2022

Hi Pete, Yes, from 1 July 2022 someone aged between 67 and 74 who is not working will be able to make non-concessional (after tax) contributions to a super account. However, to be able to claim a tax deduction on passive income, a person will need to meet the work test of working 40 hours in 30 consecutive days during the financial year. Regards Julie

March 11, 2022

Thanks Julie. For clarification, does that mean someone aged between 67 and 74 who has retired, ie not working but has passive income, can open a super account and contribute until age 74?


Leave a Comment:



What super changes should you know from 1 July?

Understanding the bring forward rule

Indexation complication! Four changes you need to know


Most viewed in recent weeks

Too many retirees miss out on this valuable super fund benefit

With 700 Australians retiring every day, retirement income solutions are more important than ever. Why do millions of retirees eligible for a more tax-efficient pension account hold money in accumulation?

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.

Is the fossil fuel narrative simply too convenient?

A fund manager argues it is immoral to deny poor countries access to relatively cheap energy from fossil fuels. Wealthy countries must recognise the transition is a multi-decade challenge and continue to invest.

Reece Birtles on selecting stocks for income in retirement

Equity investing comes with volatility that makes many retirees uncomfortable. A focus on income which is less volatile than share prices, and quality companies delivering robust earnings, offers more reassurance.

Welcome to Firstlinks Election Edition 458

At around 10.30pm on Saturday night, Scott Morrison called Anthony Albanese to concede defeat in the 2022 election. As voting continued the next day, it became likely that Labor would reach the magic number of 76 seats to form a majority government.   

  • 19 May 2022

Keep mandatory super pension drawdowns halved

The Transfer Balance Cap limits the tax concessions available in super pension funds, removing the need for large, compulsory drawdowns. Plus there are no requirements to draw money out of an accumulation fund.

Latest Updates

SMSF strategies

30 years on, five charts show SMSF progress

On 1 July 1992, the Superannuation Guarantee created mandatory 3% contributions into super for employees. SMSFs were an after-thought but they are now the second-largest segment. How have they changed?

Investment strategies

Anton in 2006 v 2022, it's deja vu (all over again)

What was bothering markets in 2006? Try the end of cheap money, bond yields rising, high energy prices and record high commodity prices feeding inflation. Who says these are 'unprecedented' times? It's 2006 v 2022.


Tips and traps: a final check for your tax return this year

The end of the 2022 financial year is fast approaching and there are choices available to ensure you pay the right amount of tax. Watch for some pandemic-related changes worth understanding.

Financial planning

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.


Listed infrastructure: finding a port in a storm of rising prices

Given the current environment it’s easy to wonder if there are any safe ports in the investment storm. Investments in infrastructure assets show their worth in such times.

Financial planning

Power of attorney: six things you need to know

Whether you are appointing an attorney or have been appointed as an attorney, the full extent of this legal framework should be understood as more people will need to act in this capacity in future.

Interest rates

Rising interest rates and the impact on banks

One of the major questions confronting investors is the portfolio weighting towards Australian banks in an environment of rising rates. Do the recent price falls represent value or are too many bad debts coming?



© 2022 Morningstar, Inc. All rights reserved.

The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.