Okay, we can admit it.
Talking about super can sometimes have a white noise, eyes-glazing-over effect on people….
But what if we told you there are some changes happening to super from 1 July 2022 that could benefit you? Let’s get into it.
No more $450 threshold for lower-paid workers
If you live in Australia, your employer must contribute 10% of your wages/salary to your super fund. This is called the ‘super guarantee’ – or ‘SG’ for short. But did you know you used to have to earn at least $450 per month before SG is paid?
From 1 July 2022, this income threshold is being removed, so employers will need to start paying SG contributions for smaller amounts too. Check your payslip if you’re affected by this to make sure you’re receiving your shiny new super dollars.
Increased SG for all employees
That 10% SG rate we mentioned above? It’s increasing on 1 July 2022 to 10.5%. And it should be paid to casuals, part-time and full-time workers.
Changes to the co-contribution eligibility
If you pay extra money into your super after tax, and meet eligibility criteria, you could receive a co-contribution from the government into your account of up to $500. The amount you receive depends on what you earn and contribute. Each year, the earnings thresholds change. To see the 2022/23 rates, go to First Super’s Government Co-Contribution webpage.
Higher limits for the First Home Super Saver scheme
Using the First Home Super Saver Scheme (FHSS), first home buyers can contribute money to their super fund at the reduced (concessional) tax rate of 15% then withdraw it later for their house deposit. The maximum withdrawal will increase on 1 July 2022 from $30,000 to $50,000. Even better, money transferred to Australia from a KiwiSaver account can be used if you meet the ATO rules. Here’s some info from First Super about how this works.
Did we mention you can transfer your KiwiSaver to First Super too? Having all your money in the one place could help you save on wasteful fees and taxes.
This is a sponsored advertising promotion by First Super Pty Limited (ABN 42 053 498 472, AFSL 223988) as trustee of First Super (ABN 56 286 625 181).
This document contains general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and read the Product Disclosure Statement before making any investment decisions. To obtain a copy of the PDS or Target Market Determination please contact First Super on 1300 360 988 or visit our website www.firstsuper.com.au.