The Government’s decision to draft laws to assist Australians aged 65 and over to boost their retirement savings has the full support of the SMSF Association.
The proposed legislation, which will amend the Superannuation Industry (Supervision) Regulations 1994, will allow people aged 65 and 66 to make voluntary contributions without meeting a work test and for those aged 70 to 74 to receive spouse contributions by increasing the maximum age from 69 to 74.
In addition, the bring-forward arrangements to make up to three years of non-concessional contributions will be extended to people aged 65 and 66. The changes are expected to take effect from 1 July 2020.
SMSF Association CEO John Maroney says: “All these changes are welcomed, recognising as they do the need for Australians to have greater flexibility as they transition to retirement.
“Work patterns are constantly changing, so it’s essential the legislation underpinning superannuation changes too to help ensure Australians can accumulate sufficient savings to have a secure and dignified retirement.
“It has long been the Association’s policy position to support greater flexibility for making contributions to superannuation. Although our preference is to remove the work test altogether, this measure is a step in the right direction, and the Government is to be commended for implementing this election promise.”