Phone 1800 444 396
Post GPO Box 264, Brisbane QLD 4001

Changes to superannuation in July 2022

Australian cash

16 March 2022

On 1 July 2022, various changes to superannuation will come into effect that could benefit many of our members.

  • Superannuation Guarantee (SG) contribution rate to be increased to 10.5%.
  • First Home Super Saver scheme’s maximum withdrawal to be increased to $50,000.
  • Work test for retirees aged 67 and 74 years to be abolished.
  • Eligibility age for downsizer contributions to be lowered to 60 years.
  • $450 monthly income threshold for super contributions to be removed.

We’ve summarised each of these changes and what they could mean for you below.

Superannuation Guarantee contribution rate to be increased

The Superannuation Guarantee rate is scheduled to increase to 10.5% on 1 July 2022. This is the minimum percentage of a person's salary (ordinary time earnings) that their employer must pay into their superannuation.

Last year, the Government increased the Superannuation Guarantee to 10% on 1 July 2021, as part of its long-term plan to increase the rate to 12% by 2025.

Higher contribution arrangements for eligible local government employees (under the Local Government Act) are not expected to change on 1 July 2022.

Maximum withdrawal for First Home Super Saver scheme to be increased

The maximum withdrawal from the First Home Super Saver scheme will increase from $30,000 to $50,000 on 1 July 2022.

The First Home Super Saver scheme allows people to save money for their first home inside their super fund.

The scheme allows people to apply for the release of their voluntary contributions made since July 2017. Only voluntary contributions can be accessed under the scheme, and they can be either concessional (before tax) or non-concessional (after tax).

Currently, up to $15,000 of voluntary contributions from any one financial year can be released, and up to a total of $30,000 across all years. The total limit will be increased to $50,000 from 1 July 2022, however the yearly cap of $15,000 will remain.

Information about the First Home Super Saver scheme is available on the Australian Taxation Office (ATO) website.

Work test for retirees aged 67 and 74 years to be abolished

The Government will abolish the ‘work test’ that is currently applied to people aged between 67 and 74 years wanting to make a super contribution.

This change will mean retirees aged between 67 and 74 will no longer need to work for at least 40 hours in a 30-day consecutive period to be able to make non concessional (after tax) or salary sacrificed contributions (made from before-tax salary) into their super.

To be eligible to make non-concessional contributions, a retiree must have a total super balance of less than $1.7 million. Existing contribution caps apply.

Subject to meeting the relevant eligibility criteria, people aged 67-74 will also be able to access the non-concessional bring forward arrangement. This will allow them to ‘bring forward’ up to two years of non-concessional contributions.

Information about the work test (before proposed changes) is available on the ATO website.

Eligibility age for downsizer contributions to be lowered

The eligibility age for downsizer contributions will be lowered from 65 to 60 years on 1 July 2022.

Currently, people who are aged 65 years or older may be eligible to contribute up to $300,000 from the sale of their home into super. They don't need to purchase another home to be eligible. Downsizer contributions don’t count towards the concessional and non-concessional caps.

Reducing the eligibility age to 60 years could give members who are approaching retirement another option for growing their super.

Information about downsizer contributions is available on the ATO website.

$450 monthly income threshold for super contributions to be removed

The $450 monthly income threshold for employer contributions will be removed on 1 July 2022.

Removing the minimum threshold would give more opportunities to low-income workers, or people working with multiple employers, to grow their super.

Under this change, employers must pay the Superannuation Guarantee to employees who earn less than $450 per month. This means that all employees will be entitled to employer contributions into their super, regardless of how much they earn.

We’re here to help

If you would like to discuss how these changes might affect you, our team of superannuation specialists and financial advisers can help you.

We offer our members Super Health Check appointments over the phone or video call, at no additional cost. We look at your superannuation account, discuss different ways to grow it, and check that you are on track for a comfortable retirement.

Our financial advice service* can help you plan for a better financial future. Members can receive limited advice on topics related to superannuation, at no additional cost. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.

Call us on 1800 444 396 to discuss the type of appointment that would suit you best.


* ESI Financial Services Pty Ltd (ESI Financial Services, ABN 93 101 428 782) (AFSL 224952) is a wholly owned entity of LGIAsuper. ESI Financial Services has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS. In limited circumstances, a LGIAsuper Financial Adviser may also be an Authorised Representative of ESI Financial Services. Additionally, LGIAsuper has also engaged Link Advice Pty Limited ABN 36 105 811 336, AFSL 258145 to provide LGIAsuper members with access to limited personal advice over the phone in respect to LGIAsuper and Energy Super products.


This article has been produced by LGIAsuper Trustee (ABN 94 085 088 484, AFSL 230511) as trustee for LGIAsuper (ABN 23 053 121 564) and may contain general advice, which has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider the appropriateness of the advice to your objectives, financial situation and needs before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS) for your account before making any decision to acquire or contribute additional amounts to your LGIAsuper account – available to download at or call us on 1800 444 396 to request a copy. This email contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to LGIAsuper by calling us on 1800 444 396 or by emailing us at