INTHEBLACK August 2022 - Magazine - Page 51
STORY GARY ANDERS
SUPERSIZED
CHANGES
Public practitioners are advised to alert
clients about possible benefits from new
changes in superannuation legislation.
O
lder working Australians and retirees are key beneficiaries of changes to
superannuation legislation that came into effect on 1 July 2022.
Because many of the changes provide an opportunity for people to get
more of their money into the tax-effective superannuation environment,
it’s worthwhile summarising them for clients.
The temporary 50 per cent reduction in minimum age-based superannuation
drawdown rates for account-based pensions and annuities has been extended to
the 2022-2023 financial year.
The full table of minimum drawdown rates by age is available on the Australian
Taxation Office (ATO) website.
REMOVAL OF THE WORK TEST
The work test will be abolished for individuals aged between 67 and 74 when making
or receiving personal or salary sacrifice super contributions, increasing flexibility
for older Australians to save for retirement. Existing annual contribution cap
arrangements will still apply.
People aged 67 to 74 will also still need to meet the work test if they wish to claim
a personal superannuation deduction for their contribution. They’ll need to lodge a
notice of intent to claim or vary a personal super contribution deduction. The ATO
will check if they meet the work test when they lodge their income tax return.
CLICK HERE
TO LISTEN
to a CPA Australia
podcast on the
changes in
superannuation
intheblack.cpaaustralia.com.au August 2022 51