changes to super from 1 July

New financial year, new government, new rules: here are some key changes to super.

SG increase

We’re pleased that the Morrison government stuck to the scheduled increase in the Superannuation Guarantee (SG). From 1 July 2022, workers will receive employer SG contributions of 10.5% of their ordinary earnings into their super fund (up from 10%).

Several changes that were announced in last year’s Federal Budget will also come into effect on 1 July 2022. These are:

• the eligibility age for the super downsizer scheme will be lowered to 60 from 65
• the super contribution work test for those aged 67 to 74 will be removed, enabling older Australians to continue building their super savings*
• employees will no longer have to earn at least $450 for the month to receive SG contributions.

We believe removing the $450 threshold helps make our super system fairer for women and those on lower wages. It’s a great result for HESTA members, and indeed for all Australians who work multiple, part-time or casual roles.

With the transition to the Albanese government, measures to increase equity and fairness in super will remain pivotal to supporting better outcomes for workers and especially women.

Streamlining super splitting procedures

Following a successful pilot, we’re proud to be the first Australian super fund to adopt the Simpler Super Splitting initiative. In what can be a stressful time for workers, this initiative uses a simple, plain language form for court orders that can be used across the super and legal sectors and by the courts.

We urge all other super funds to adopt this new universal, streamlined process to make the splitting of superannuation assets easier, faster and fairer.

*The work test will continue to apply for personal contributions that the person wishes to claim as a tax deduction.