26 September 2023

Three ways super laws are changing that bring benefits

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Superannuation has changed for Australians. Spaceship* outlines what everyone needs to know.

From 1 July 2022, superannuation is changing for Australians.

Here’s what you need to know.

You’ll start receiving more super

The Super Guarantee is the percentage amount of your salary your employer must pay to your super fund on your behalf.

From 1 July 2022 the Super Guarantee is rising from 10 per cent to 10.5 per cent.

It’s legislated to rise by 0.5 per cent each financial year until it reaches 12 per cent.

This means that your employer will be contributing more super on your behalf.

Over 18? If you get paid, you’ll get super

From 1 July 2022 all employees who are over 18 must receive super no matter how much their employers pay them.

Wait, what?

Shouldn’t this have happened already?

Previously, if your employer paid you less than $450 in a month, they didn’t need to pay super on top of it.

This means that if you’re a low income earner, or you work in multiple part-time or casual jobs for different employers, you were less likely to be paid super at all.

People who do this kind of work tend to be women, so this is a necessary step toward addressing gender inequality when it comes to super.

If you’re under 18, you’ll still have to work at least 30 hours per week to be paid super.

You can withdraw more of your voluntary contributions for your first home deposit

The First Home Super Saver scheme is a way you can save for your first home deposit by making voluntary contributions to your super fund, and then withdrawing them when you’re ready to make your first home deposit.

Generally, money in your super fund gets taxed at a lower amount than money in a savings account.

The First Home Super Saver lets you use this to your advantage if you’re eligible.

Previously, the amount you could withdraw for the FHSS was $30,000 but as of 1 July 2022 it’s rising to $50,000.

The amount of eligible voluntary contributions you can make each year will still be $15,000.

There’s heaps to learn about the First Home Super Saver scheme.

A good place to start is at the ATO.

*Spaceship was founded in 2016 with a single mission: to enable people to invest in their future, so they can live the life they want to live.

This article first appeared at spaceship.com.au.

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