Staying up to date on superannuation legislation is essential not just for ensuring compliance, but also for maximising the benefits of superannuation as part of a well-prepared wealth management strategy for Tax Accountant Melbourne.
We gained clarity on numerous 2022 superannuation updates earlier this month, which will take effect in a few months. In this Reliable Accountants Blog, we will explain the superannuation changes you need to know about. Below mentioned superannuation changes will take effect on July 1, 2022:
Changes to Income Threshold for Super Guarantee Eligibility
The Australian Government announced on 11 May 2021, as part of the 2021–22 federal Budget, that the $450 monthly threshold would be removed, allowing eligible employees to be covered by a super guarantee regardless of their monthly earnings.
Employers will be compelled to make super guarantee contributions to their suitable employees’ super fund from July 1, 2022, regardless of how much they are paid.
Our Tax Accountant in Melbourne helps employers to verify their payroll and accounting systems have been upgraded for super payments received after July 1, 2022, for ensuring employees’ super guarantee entitlement is appropriately calculated.
First Home Super Saver (FHSS) Scheme
The first House Super Saver (FHSS) scheme lets you to put money aside in your super fund for your first home. With superannuation’s favourable tax treatment, first-time buyers will be able to save more quickly.
The number of eligible contributions that can count toward the highest releasable amount across all years will enhance from $30,000 to $50,000 starting from July 1, 2022. The maximum amount of qualifying contributions that can be used to your FHSS maximum releasable amount for each fiscal year remains at $15,000. Our expert Accountants Melbourne will help individuals for more understanding of this First Home Super Saver (FHSS) Scheme.
Reduction to Downsizer Contribution Age
The eligibility age for the Downsizer Contribution will be lowered from 65 to 60.
Downsizer contributions were introduced in July 2018 to allow people who would otherwise be unable to make non-concessional contributions due to their age or contribution cap constraints to put the money from the sale of their property into superannuation. Downsizer contributions are exempt from the age and work test requirements that apply to other non-concessional contributions, as well as the non-concessional contribution cap. Individuals who do not want to wait until they are 65 to employ the downsizer contribution scheme will gain. Rest they can also gain more knowledge by searching Tax Accountant near me in Melbourne.
Non-Concessional Contribution Rules
The revision of non-concessional contribution rules for super members aged 65 to 75 has resulted in the removal of the work test as well as the extension of bring-forward concessions. Our Accountants Melbourne helps you to invest in superannuation to accomplish your retirement objectives by increasing your savings.
Exempt Current Pension Income
In some instances, superannuation funds will be able to choose their preferred method of computing Exempt Current Pension Income (ECPI), as stated in the 2019-20 Federal Budget. The administrative burden and associated costs for trustees will be reduced as a result of these changes.
The law will take effect on April 1, 2022, and will apply to assessments for the income years 2021-22 and later.
Trustees of superannuation funds that maintain all fund assets in retirement phase for part of an income year but not all of it can now choose to treat the assets as non-segregated current pension assets for that period. Our Melbourne Accountants helps individuals to choose this option that will be able to calculate Exempt Current Pension Income (ECPI) by using the proportionate technique.
Previously, when a fund was entirely in the retirement phase at any moment during the income year, trustees were necessary to employ the segregated technique. Trustees may have been required to utilise both the proportionate and segregated methods to calculate ECPI when a fund had members in both the accumulation and retirement phase for part of the income year and just the retirement phase for the rest of the income year.
Reliable Accountants Company Melbourne Accountants helps individuals to gain diverse knowledge of superannuation updates. Our highly professional Melbourne Tax Accountants will be beneficial for individuals and businesses to deal with various taxation and accounting services.