First change we have is the Removal of the work test for NCCs and Salary Sacrifice. 

This means that clients aged between 67 and 74 will no longer have to meet the work test to make Non-Concessional Contributions (including using the bring forward rule, where all other tests are met), however if you are wanting to claim that contribution as a tax deduction you will still need to meet the work test. Additionally you no longer need to meet the work test to make salary sacrifice contributions (which makes sense, as you can only do them when your employed).

The Treasury has also clarified that if you are age 74 you will still be able to trigger the bring forward rule and put potentially $330,000 into super, even though you cannot technically contribute after age 75.

Next we have The Downsizer Contribution Rule.

Originally you didn’t have access to this until age 65, but now this has been brought forward and can be accessed from age 60, allowing you to put in $300,000 each from the sale of your home into super without affecting your other caps. You can read more about it here

The First Home Super Saver Scheme (FHSSS) is getting a change.

The FHSSS total withdrawal cap is increasing from $30,000 up to $50,000, this allows for you to save for a larger deposit for your first home, however it is important to know that the $15,000 p.a cap still applies to this one. You can read more about how the FHSSS can help you save for your first home here.

Changes to The Compulsory Super Guarantee.

Two changes has been made on this front, first, it looks like they will stick with the original plan and increase the SG from 10% to 10.5% on 1 July, however please note that if you are on a Total Benefit Package, this could mean a reduction in take home pay.

Next the minimum threshold before SG is payable has been abolished, originally if you were earning less that $450p/m your employer did not have to pay SG, however that will no longer be a thing thanks to this change in legislation.

Changes to the minimum pension draw for Account Based Pensions is set to return to normal.

During Covid the government halved the minimum pension draw for pensioners allowing them to hold their money in their pension if they didn’t need to help preserve their wealth as we saw the market shave off around 30% in two months. This provision was around for FY19/20, FY20/21 and FY21/22 but is set to finish up now and revert to normal on 1 July 2022.

The Pension Loan Scheme gets revived with a name change.

The PLS is getting renamed the Home Equity Access Scheme (HEAS) and also has a new compound rate of 3.95% which is down from it’s previous 4.5%. The now HEAS has received a bit of attention from the government to make it a suitable alternative to reserve mortgages and is a good option to consider if you are asset rich and cashflow poor in retirement.

The Last Supper for the Low & Middle Income Tax Offset.

Sadly this will be the last year we enjoy a bonus tax offset of $1080 as the LMITO comes to an end on 30 June 2022. However it has been replaced with changes to income tax rate thresholds so hopefully it won’t be too much of a difference.

If you are looking at Income Protection Policies  now would be a good time to pull the trigger.

As from 1 October 2022, all new income protection policies will no longer be guaranteed renewable, instead they will only be 5 year renewable, and the insurer will be able to reassess your income and occupation (but not health) and assess if they are going to offer cover again and at what rate. So to avoid this risk moving forward make sure you take out cover before October.


All legislation has been passed, however is awaiting royal assent. Most changes mentioned above are due to come into affect on 1 July 2022, however please make sure you do your own checks before acting on the outlined changes, or get in touch with us at Funded Futures Financial Services to receive advice tailored to your personal circumstances.