Changes coming to super on 1 July

From 1 July this year, there are a number of changes coming that may affect your super. The superannuation guarantee (SG) $450 earnings threshold, work test, First Super Saver Scheme and the way downsizer contributions can be made will all be different – so it’s important to get ahead of the changes and make sure you’re ready for the new financial year.

To start with, every employer, under most circumstances, is obligated to contribute SG to their employees’ super. Currently this compulsory contribution is 10% of your ordinary time earnings, scaling up to 12% in 2025. As of 1 July 2022, the rate is expected to go up from 10% to 10.5%, and again to 11% in the following financial year, 2023/24.

$450 threshold scrapped

Currently, if you earn less than $450 in a month, employers aren’t obligated to pay super, no matter the rate. This will change in the new financial year, when there will be no earnings threshold and employees will be paid super regardless of the total amount you might earn.

According to the government’s Retirement Income Review1, around 300,000 people will benefit from removing this monthly threshold, and 63% of them are women.

Work test requirements scrapped

Under current rules, if you’re aged between 67 and 74 and want to continue contributing to your super, you have to satisfy a ‘work test’, confirming you’ve been employed for 40 hours over a consecutive 30-day period. This requirement will be scrapped in the 2022/23 financial year for non-concessional (after tax) contributions, meaning you can continue contributing to super regardless of the hours you’ve worked. Caps still apply and individuals aged 67 to 74 will still have to meet the work test to make personal deductible contributions.  People under the age of 75 may also be eligible to use bring forward provisions, meaning they may be able to contribute up to $330,000 into their super.

The abolishment of the threshold and work test mean many more people will be able to contribute into their super.

Changes to First Home Super Saver Scheme (FHSSS) and Downsizer contributions

If you’re looking at buying your first home, the government increased the amount of voluntary super contributions members can release under FHSSS from $30,000 to $50,000 (with a limit of $15,000 from any one financial year). This means, as long as you have saved that extra money in your super (above the SG contributions your employer makes), more can be released to pay a deposit on a home.

The final major change will be amending the minimum age members can contribute downsizer contributions into super from 65 down to 60. This contribution will not affect your contribution cap and is a payment made into super after selling your home.  Eligibility criteria apply.

If you have any questions or want to organise a time with the team here at Vision Super to help get the details you need, don’t hesitate to get in contact today. We’re always happy to help.

Getting help

Many of these changes that will come into effect 1 July 2022 can make your money work harder for you – but a lot of them are complex. It’s always important to seek help to ensure you’re getting the most out of your super. If you’d like to have a chat with us about how to best take advantage of any of these changes, call us on 1300 300 820 Monday to Friday 8:30am to 5pm.


1 Retirement Income Review, Final Report, July 2020



This is general information only that doesn’t take into account your objectives, financial situation or needs, so before acting on it, consider whether it is appropriate for you having regard to your own circumstances and obtain the appropriate Vision Super Product Disclosure Statement (PDS) and Target Market Determination (TMD) available from before making any other decisions about Vision Super. Vision Super products are issued by Vision Super Pty Ltd ABN 50 082 924 561 AFSL 225054 RSE licence number L0000239 as the Trustee of the Local Authorities Superannuation Fund ABN 24 496 637 884.