Changes to Superannuation Contribution Rules

In last year’s federal budget, the Australian Government announced a number of changes to the superannuation contribution rules to provide more flexibility for members to save for their retirement via superannuation. These changes included:

  • Allowing members aged 65 and 66 to make voluntary contributions to superannuation without having to meet the work test

  • Increasing the cut-off age for spouse contributions from 70 years to 75 years, and
  • Enabling members aged 65 and 66 to make up to three years of Non-Concessional Contributions (NCC) to super under the 'bring forward' rule.


While the first two changes have been legislated to come into effect on 1 July 2020, the change to the NCC bring-forward rule is yet to be passed.  As a result, with Parliament rising yesterday and not scheduled to sit again until 4 August 2020, it is unlikely that this change will become law by its proposed 1 July 2020 start date.


The legislated changes to the work test and spouse contributions are good news for older members and provide a number of important strategic opportunities. To assist advisers understand these opportunities, we have put together the following article: Two extra years to make super contributions

This delay in making changes in the NCC bring-forward rule will unfortunately provide a level of uncertainty for members turning 67 early in 2020-21, who don’t satisfy the work test or work test exemption.


For example, under the new work test rules, these members can make voluntary member contributions prior to turning 67.  However, they may not know at the time of making the contribution whether they will be eligible to make NCCs of up to $300,000 under the proposed new rules, or $100,000 under the existing rules.


For members who will be over 65 but under 67 in 2020-21, the delay in the rule changes may not have as significant an impact.  These members may be better off delaying triggering the final bring-forward rule until a later year (ie. after the Bill has been dealt with by Parliament) to maximise their total NCCs.

Subscribe to receive our updates

To keep up to date with the latest in Hayes Girling Financial news, please subscribe to our enewsletter