Currently, people aged 65 to 74 can only make voluntary contributions to their superannuation if they work a minimum of 40 hours during a 30-day period in a given financial year.
The drafted laws have sought to allow individuals in the age range to make voluntary contributions without meeting the work test. They would also allow people aged 70 to 74 to receive spouse contributions by increasing the maximum age from 69 to 74.
The Liberal party committed to making the change during the 2019 federal election.
Assistant minister for superannuation, financial services and financial technology Jane Hume said: “This draft legislation reflects the Morrison government’s ongoing commitment to ensuring all Australians have additional flexibility in how they save as they transition to retirement.”
“The coalition understands the realities of the modern workplace. Work patterns have evolved and more women are rejoining the workforce than ever before. Our superannuation system needs the flexibility to match.”
Further, people under 65 currently can make up to three years of non-concessional contributions under the bring-forward arrangements.
The draft bill would amend the Income Tax Assessment Act 1997 to extend access to the bring-forward arrangements to people aged 65 and 66.
The government has invited feedback from stakeholders, with the consultation to close on 3 April.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
