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How To Have A Happy New Financial Year

The beginning of a new financial year brings with it fresh opportunities to thrive and prosper. And this year is no different. From July 1 there are changes to super that could benefit everyone from employees to seniors as well as a sweetener for people saving hard for their first home. Here’s how they might make the new financial year a happy one for you.

Employees Anyone who receives super guarantee (SG) contributions from their employer is about to get a boost. The SG contribution rate rises from 10 per cent of your wages or salary to 10.5 per cent on July 1. Although if your salary package that includes SG contributions, your take-home pay will be reduced.

Gig economy workers or casuals

There’s great news for anyone making small amounts from casual gigs. The $450 SG threshold will be removed from July 1 and employers are required to pay SG contributions into your fund. So now when you turn up for that casual barista shift your employer will be putting dollars in your pocket for your present self and your future self.

Seniors wanting to top up their super

On the verge of your golden years and wanting to put as much as possible into super? There are several rule changes that will support you. People aged 65-74 will no longer have to meet the work test to make voluntary contributions to super. Under the work test meant you have to prove you worked a minimum of 40 hours, during a period of 30 consecutive days, in the financial year for which you wanted to contribute. However, from July 1 if you are aged 67-74 and you want to claim a tax deduction for a personal super contribution you will need to meet the work test, or work test exemption. Another change is the ‘bring forward’ rule age limit increases from 67 to 75. This rule allows you to use up to three years’ worth of your future non-concessional (after tax) super contribution caps over a shorter period without having to pay extra tax.

The non-concessional contributions cap is currently $110,000 per year. So if you may be able to contribute up to $330,000 in a single year as long as you don’t exceed the total cap over the three-year period. Eligibility for the bring forward rule depends on your total super balance at the most recent June 30 and the amount of your personal contributions over the past two financial years.


Ready to sell the family home and put some extra dollars into super? After July 1 you won’t have to wait until you’re 65 to put your downsizing plans into action. From the age of 60 you’ll be able to downsize and put up to $300,000 into super.

First home-buyers

If the dream home is still ahead there’s a change that could help you get there. From July 1 first home-buyers can now save up to $50,000, and any deemed earnings, to use as a home deposit through the First Home Buyer Saver Scheme. That’s an increase from $30,000. The scheme allows first home-buyers to release eligible voluntary super contributions, along with any deemed earnings, for the purchase of their first

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