On 17 June 2021, the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 was passed by Parliament, and now awaits Royal Assent.
The Bill increases the maximum age the bring forward rule for non-concessional contributions can be triggered to the year the individual turns 67. Prior to this change the last year the bring forward rule could be triggered was the year the individual turned 65. This means that individuals aged 65 and 66 on 1 July of the relevant financial year who were not previously able to access the bring forward rule due to their age may do so, starting in the 2020-21 financial year.
The Bill also includes:
- the removal of the excess concessional contributions charge from 1 July 2021. The excess concessional contributions charge is a charge calculated on the additional tax liability that arises when someone exceeds their concessional contribution cap; and
- a change to allow individuals who have accessed their superannuation benefits under the COVID-19 early release of super rule to re-contribute the funds back into superannuation without the amount counting towards the individual’s non-concessional contribution cap. In addition, the contribution cannot be claimed as a tax deduction. This change is effective from 1 July 2021.
Parliament of Australia, Treasury Laws Amendment (More Flexible Superannuation) Bill 2020, 17 June 2021