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What’s on the horizon for super?

July 7th, 2021

As we kick off a new financial year, it’s a good time to look ahead and consider what’s in the pipeline for super. Are there any changes on the horizon that could affect you or benefit your balance?  

Below, we’ve summarised key changes for super that occurred on 1 July 2021 or are planned. 


On 1 July, the Super Guarantee (SG) rate increased to 10% from 9.5%. This was part of a previously legislated change, which will see SG continue to rise until it reaches 12% in 2025. Despite some hesitation from the Government in the lead-up, the increase went ahead smoothly. 

If you’re still working and receiving SG from your employer, any contributions you receive from 1 July onwards should be at the new rate of 10%. Be sure to check your payslip or your contributions transactions in firstonline. 


The amount members can contribute to super increased by 10% for the 2021/22 financial year, as follows: 

  • the concessional (before-tax) contributions cap is now $27,500  
  • the non-concessional (after-tax) contributions cap is now $110,000  
  • the general transfer balance cap is now $1.7 million. 


To make it easier for older Australians to keep building super, the Government plans to shelve the work test from 1 July 2022. 

The work test currently requires those aged 67 to 74 (inclusive) to prove gainful employment for at least 40 hours over 30 consecutive days during the financial year. If you don’t meet the test or qualify for an exemption, your super fund can’t receive personal contributions for you.  

(If you were required to meet the work test during the 2020/21 financial year, you’ll receive a letter from us asking for confirmation.) 


The Government is keen to encourage older Australians to downsize their family home when it no longer suits their lifestyle. Obviously, this is a very personal decision with many financial considerations. But if it is on your radar, from 1 July 2022 it will be possible for more people to contribute the proceeds of this sale (up to $300,000 for individuals and double for couples) into super. The Government is reducing the age limit for downsizer contributions to 60 (down from 65). This contribution won’t count towards the super contribution limits but does count towards your Age Pension eligibility assessment.  


The PLS scheme is being improved by giving participants access to advance payments of up to 26 fortnights’ worth of top-up payments as a lump sum and introducing a No Negative Equity Guarantee. This will provide immediate access to lump sums of around $12,000 for singles and $18,000 for couples. 

No Negative Equity Guarantee will mean that borrowers under the PLS, or their estate, will not owe more than the market value of their property, in the rare circumstances where their accrued PLS debt exceeds their property value. This brings the PLS in line with private sector reverse mortgages. 

Like the other proposed Budget changes, this is expected to kick in on 1 July 2022.  


Have questions about your super, or need help planning for the future? Contact our Member Services Team or request a call-back from a First Super Financial planner.