- On 6 October 2020, the Australian Government introduced personal income tax cuts as part of the 2020-21 Budget (to apply retrospectively from 1 July 2020). This is summarised below:
- Downsizer contributions are available to individuals who sell their main residence to be able to contribute another $300k within 90 days of receiving the proceeds of sale regardless of age and existing amounts in super (yes this is available if you have more than $1.6M).
- Work Test Requirements for individuals aged 65 & 66 has been removed and legislated (effective July 2020) to allow individuals to make voluntary concessional and non-concessional superannuation contributions without meeting the work test requirements of a minimum of 40 hours worked over a 30 consecutive day period.
- The bring-forward arrangement is awaiting senate approval to allow individuals aged 65 & 66 (previously age 64) to make non-concessional contributions of up to 3 years’ worth ($300,000) in a single year (based on the annual $100,000 cap). As non-concessional contributions are made from after-tax funds, these contributions are not taxed on entry to the superannuation fund.
- The age limit for eligible spouse contributions will increase from 69 to 74.