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The $50,000 superannuation change in Budget 2022

·Personal Finance Editor
·2-min read
Budget 20922: Australian currency and a young couple look at a computer.
The Budget will allow first home buyers to use their super to save up to $50,000 for a deposit. (Source: Getty)

The 2022 Federal Budget is encouraging young Aussies to save for their first home by making extra contributions to their superannuation.

The First Home Super Saver Scheme (FHSSS) is designed to help Australians boost their savings for a first home by allowing them to build a deposit inside their superannuation.

Aussies who take advantage of the scheme will be rewarded with a tax cut.

From 1 July 2022, the maximum amount of voluntary contributions that can be released under the FHSSS will be increased to $50,000 from $30,000 enabling first home owners to achieve home ownership sooner.

Superannuation guarantee

The Superannuation Guarantee (SG) is the percentage of your income that must be put aside for your retirement savings.

Currently, the SG is at 10 per cent, and this is legislated to increase to 12 per cent by 2025.

Every year, from July 1, the SG will rise 0.5 per cent until reaching 12 per cent.

Major changes from 2021 Budget

Last year, the Government announced a range of changes to superannuation, affecting everyone from first-home buyers, low-income earners and retirees.

The Government removed the $450 monthly income threshold, meaning those earning less than $450 a month would be required to pay super.

In addition, Those aged 67 to 70 would no longer be required to meet the work test when making, or receiving, non-concessional super contributions or salary-sacrificed contributions.

In another move, Aussies over the age of 60 were allowed to make a bulk contribution of $300,000 into their super if they downsized their home.

Previously, Australians needed to be at least 65 years old to make the contribution.

The Government said the move was designed to not only help older Australians save for retirement but also give younger families more access to the housing market by freeing up some supply.

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