With the re-election of the Coalition, the Government can be expected to go ahead with its plan to introduce three measures that will allow older people to contribute more to their super.
The plan is to relax the contribution work test, increase the age limit for spouse contributions and extend eligibility for bring-forward arrangements.
In his Budget speech Treasurer Josh Frydenberg said that from 1 July next year, Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the work test.
Currently, people in this group can only make voluntary contributions if they work a minimum of 40 hours over a 30-day period.
The rule change will align the work test with the eligibility age for the Age Pension, which is scheduled to reach 67 from 1 July 2023.
The Government estimates that there are around 55,000 people aged 65 and 66 who will benefit from the change.
This comes on top of changes announced in December, when the Government said that from July this year Australians aged 65 to 74 with a total superannuation balance below $300,000 will be able to make voluntary contributions for 12 months from the end of the financial year in which they last met the work test.
Frydenberg said the age limit for spouse contributions would go up from 69 to 74. Currently those aged 70 and over cannot receive contributions made by another person on their behalf.
And the Government will extend access to the bring-forward arrangements, which currently allow those aged under 65 to make three years’ worth of non-concessional contributions to super in a single year.
Under the new rule, this will be extended to those aged 65 and 66.