Super contributions work test exemption extended to age 66

The Budget confirmed the Treasurer's announcement that individuals aged 65 and 66 will be able to make voluntary superannuation contributions from 1 July 2020 (both concessional and non-concessional) without needing to meet the contributions work test.
Currently, individuals aged 65-74 must work at least 40 hours in any 30-day period in the financial year in which the contributions are made (the "work test") in order to make voluntary personal contributions
The proposed extension of the work test exemption means that individuals aged 65 or 66 who don't meet the work test, will be able to make voluntary contributions to superannuation, giving them greater flexibility as they approach retirement.
The ITAA 1997 will also be amended to extend access to the bring forward arrangements for non-concessional contributions to those aged 65 and 66. The bring forward rules currently allows individuals aged less than 65 years to make 3 years' worth of non-concessional contributions (which are generally capped at $100,000 a year) in a single year.

Spouse contributions age limit increased

From 1 July 2020, the age limit for making spouse contributions will be increased from 69 to 74. Currently, those aged 70 and over cannot receive contributions made by another person on their behalf.

Exempt current pension income calculation to be simplified for super funds

From 1 July 2020, superannuation fund trustees with interests in both accumulation and retirement phases during an income year will be allowed to choose their preferred method of calculating exempt current pension income (ECPI). Currently, some superannuation funds have a restriction of whether they can used the ‘segregated method’ or ‘proportionate method’ when calculating ECPI.
The Government will also remove a redundant requirement for superannuation funds to obtain an actuarial certificate when calculating ECPI using the proportionate method, where all members of the fund are fully in the retirement phase for all of the income year.

Super insurance opt-in rule for low-balances delayed

The Government confirmed that it will delay the start date to 1 October 2019 for ensuring insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under age 25.