Superannuation focus on older Australians and pensioners
26 October 2022
In last night’s Federal Budget, there were very few superannuation changes in general. No new measures were announced but there was more detail released for a few measures that had already been floated that mainly target older Australians and those eligible to access government age pensions.
Downsizer superannuation contribution
As discussed in the Budget handed down on 22 May 2022, the Government will look to expand access to the downsizer superannuation contribution by lowering the age which you can access the scheme from 60 years of age down to 55. While it hasn’t been passed, we believe that it will be in the current financial year.
In an important announcement for all taxpayers that hold cryptocurrencies, inside or outside of Self-Managed Superannuation Funds (SMSFs), digital currency will not be taxed as foreign currency.
Temporary income credit
While not specifically related to superannuation, this Budget will provide a temporary income credit of $4,000 to older Australians.
Designed to encourage age and service pensioners to participate in work without having their pensions affected, this initiative will allow older Australians to keep more of their money by increasing the amount pensioners can earn this financial year from $7,800 to $11,800 before their pension is reduced. This will ultimately help to boost the labour supply and meet work shortages.
Exemption of home sales
Older Australians will be encouraged to downsize their homes to free up housing for younger families. The Government will extend the exemption of home sales from age pension asset testing from 12 to 24 months. This gives pensioners more time to build, purchase or renovate a new home before their age pension is affected.
Residency rules for SMSFs
The Labour government has confirmed the relaxation of the residency rules for SMSFs. Given no legislation has yet been put forward this one still may be a way off.