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Will the superannuation changes on 1st July affect you?

Recently, a suite of superannuation changes were passed by both houses of Parliament. As of February, some are already in effect, but we expect to see many significant changes come into play from July 1. The changes will affect a range of Australians — mainly low-income earners, first-home buyers, working seniors, and downsizers.

Low-income earners

From July 1, employees ages 18 or over will be entitled to compulsory superannuation contributions, regardless of their income. Currently, the income minimum for super is $450 per month, whereby the employer must pay 10% of the pre-tax income amount into a super fund. In July, this will increase to 10.5% and the $450 minimum will be removed — we expect many Aussie workers to be seeing super for the first time. 

First homebuyers

As of July 1, the First Home Super Saver Scheme will be expanded — first homebuyers will be able to accrue a deposit of up to $50,000 with little tax influences. This currently sits at $30,000, so the $20,000 increase is predicted to make a huge impact. The revamped Scheme allows first homebuyers to deposit up to $15,000 a year into a superfund, specifically to use for a new home. There are two ways you can do this:

• With the after-tax non-concessional contributions.

• By making voluntary tax-deductible contributions to your super. 


Most people doing this will only pay a 15% super contribution tax on the investment amount, instead of the normal marginal tax rate of 34.5%. 

Working seniors

We’re pleased to tell you that the rules around the work test are changing from July 1. Currently, anyone aged 67 – 75 must work 40 hours over a 30-day period to be eligible to contribute to super. As of July, only people who wish to make a tax-deductible concessional contribution to super will need to satisfy the work test.


You can make non-concessional contributions of up to $110,000 a year without satisfying the work test. Similarly, those up to the age of 75 will be able to make use of the “bring-forward rule” which allows them to deposit an additional two years of contributions. There are no changes for individuals over 75-years-old. If this is you, your only option is to make use of the super downsizer concession — let’s take a look at it. 

Super downsizers

The super downsizer is a one­off single contribution of up to $300,000 per person — there is no upper age limit. There are a few conditions:


  • This contribution must come from the profits of the sale of your home.
  • The home must be considered your “primary dwelling”, and you must have lived there for at least 10 years. 
  • Your contribution must be made within 90 days of settlement and doesn't count towards any of the contribution caps. 


The super downsizer isn’t a new system, but the big change from July 1 is that the minimum age is being lowered by five years. As of July, you can make use of the super downsizer rule from age 60 (currently set to 65). 

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