Super Opportunities Coming Your Way in 2022

Get ready people!  There are a raft of new opportunities coming your way in 2022 and they are ‘SUPER’!!!

The Federal Government has announced a range of changes to legislation that will present plenty of opportunities for Australians to contribute more of their money to the ‘tax-haven’ of super.

Increased Employer Contributions

As of July 1, 2022, Employer Superannuation Guarantee (or SGC payments) are legislated to increase to 10.5% from the current 10%, significantly increasing contributions being made on behalf of employees and boosting long-term retirement outcomes.  The government’s aim is for that figure to continue to rise until it reaches 12% on 1 July 2025.

With even more money going into your super retirement savings, it is even more important to ensure you have an up-to-date strategy in place to make sure you can lead the life you want in retirement.  Those with a salary sacrificing strategy in place, may need to revisit their current personal contributions to ensure they do not breach any contribution caps.

More access to the downsizer contribution

From 1 July, 2022, the minimum age that you can make a ‘downsizer contribution’ will drop from 65 to 60. The downsizer scheme allows you to make a one-off contribution into your super of up to $300,000 (or $300,000 each for a couple) from the sale of the family home.  Importantly, this does not count towards any concessional or non-concessional contributions caps.

Example – Tom and Robyn, aged 64 and 68 have decided that their current family home, which they have lived in for over 10 years, is too big and getting harder to manage.  They have decided to ‘downsize’ by purchasing a smaller property that better suits their lifestyle.  They sell their home for $1.2 million and purchase their new smaller home for $800,000.  This leaves them with a surplus of $400,000.  They make a contribution to their super for $200,000 each under the downsizer legislation (using the left over cash from the sale of their home), which is invested and now provides them with more ongoing income in retirement and preserves their retirement savings capital for longer.

The ‘work test’ for retirees will be removed

From 1 July 2022, individuals aged 67 to 74 will no longer be required to meet the work test when making, or receiving, non-concessional superannuation contributions or salary sacrificed contributions. These individuals will also be able to access the non-concessional bring forward arrangement, subject to meeting the relevant eligibility criteria.

Example – Noel is aged 69, retired, and holds a personal (non-super) investment account with a balance of $600,000.  Currently, this places him in a position where he is paying income tax due to the earnings of the investment.  Previously, he has not had the opportunity to contribute more to his pension due to his age.  He can now potentially make a contribution to his super fund of up to $330,000 next financial year.  This will ensure his funds are invested in a tax free environment and he will most likely no longer pay any income tax.


The recent changes highlighted are a positive step in the right direction for everyday Australians.

But, as with any new legislation involving superannuation and contributions, the details can be complex and there are a number of other issues to consider.  Professional advice from your financial adviser is a must when considering these strategies.

To discuss your opportunities in light of these new ‘super’ changes, contact us today!

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

  • Aaron Steer
  • Mar 17 2022
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