On the eve of the budget, the federal government has introduced new measures that will allow Australians to boost their retirement savings as they near their golden years.
From 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional without meeting the Work Test.
Currently older Australians can only make voluntary contributions if they meet the test which requires a minimum of 40 hours work over a 30-day period, but these new rules will scrap that.
This will align the Work Test with the eligibility age for the age pension which will reach 67 from 1 July 2023.
Treasurer Josh Frydenberg said that this measure would benefit around 55,000 Australians when it is introduced.
“In addition, we will increase the age limit for spouse contributions from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf,” he said.
The government also said it would extend access to bring-forward arrangements to 65- and 66-year old’s, allowing them to make three years’ worth of non-concessional contributions, capped at $100,000 a year to their super in one year.
“The government can deliver these reforms because our responsible budget management allows us to guarantee the essential services that Australians rely on,” he said.
The announcement came prior to the government’s much anticipated budget which the treasurer said would bring Australia to a surplus.
“We will deliver the first surplus in more than a decade. It’s the product of responsible decisions, difficult but necessary decisions,” said Mr Frydenberg.
Mr Fryedenberg said the surplus was a product of responsible decisions and said there was more to do.
“The Coalition believes that every Australian should earn more, and that every Australian should keep more of what they earn, and that will be reflected in this budget tonight,” he said.
The super announcement is the latest in a series of super reforms introduced by the government, which has included new laws to reunite super members with their super, scrapped exit and excessive fees and changes to insurance premiums.
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