10 February 2022

Parliament passes legislation to enhance the superannuation system


Joint media release with
Senator The Hon Jane Hume
Minister for Superannuation, Financial Services and the Digital Economy
Minister for Women's Economic Security

The Morrison Government has today passed through the Parliament the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 which will ensure superannuation continues to work in the best financial interests of all Australians.

The passage of the Bill will provide more flexibility for families and individuals preparing for retirement by allowing individuals aged between 67 and 75 to make non-concessional superannuation contributions under the bring-forward rule. The legislation also supports the repeal of the work test for non-concessional and salary sacrificed contributions made by individuals aged between 67 and 75.

The Bill also delivers on a key commitment in the 2021-22 Women’s Budget Statement by removing the $450 per month income threshold under which employees do not have to be paid the superannuation guarantee by their employer. This will remove an outdated structural feature of the superannuation system and in doing so will improve equity in the system.

These superannuation measures will take effect from 1 July 2022.

The Bill will also reduce costs and simplify reporting for superannuation funds by allowing trustees to use their preferred method of calculating exempt current pension income where the fund is fully in the retirement phase for part of the income year but not for the entire income year. This measure will apply for the 2021-22 income year onwards.

The Bill and explanatory material are available on the Parliament of Australia website.

Through these measures, the Morrison Government is ensuring the superannuation system works harder for all Australians by strengthening protections around the retirement savings of millions of Australians.