Upcoming changes to super from 1 July 2022

1 July 2022 will mark both the beginning of the 2022/23 financial year as well as changes to a number of super rules.

With the new financial year fast approaching, it’s important to stay on top of the upcoming 1 July 2022 changes to super rules and what they might mean for you. To help you stay informed we’ve unpacked these rules for you.

  • Superannuation guarantee rate increased to 10.5%

    People receiving Superannuation Guarantee (SG) contributions from their employer, will enjoy an increase from 10% to 10.5% from 1 July 2022, helping to further boost their retirement savings. 

    A little can go a long way

    Although an increase of 0.5% to the SG rate may sound small, over the long term, even a small amount can have a significant impact on your balance. 

    The Mercer Retirement Income Simulator, can help you visualise what your retirement income could look like, how long it might last and the difference adding a little extra can make.

  • First Home Super Saver Scheme withdrawal limit increased

    The First Home Super Saver Scheme was designed to help younger Australians use their super account to help save for their first home. 

    People who use this scheme can make additional contributions to their super, and when ready to purchase, withdraw those funds, along with the interest earned to help pay for the purchase of their first home.

    Originally people could access up to $30,000 from their super under the FHSSS, however from 1 July 2022 this will increase to $50,000.

  • Downsizer contribution minimum age reduced to age 60

    The downsizer contribution was introduced to help reduce pressure on housing affordability, by freeing up housing stock for people trying to enter the housing market, while also offering older Australians more flexibility and control over their retirement savings.

    Under this scheme, people can add up to $300,000, or $600,000 per couple, to their super account, from the proceeds of selling their home.

    Originally you needed to be at least age 65 to make a downsizer contribution, however from 1 July 2022 this will reduce to age 60.

  • Work test no longer required

    The work test requires people aged 67-74 who’d like to make additional contributions to their super to either declare that they have met the work test or the work test exemption.

    From 1 July 2022, the need for people aged 67-74 to complete a work test declaration or meet the work test exemption prior to making additional contributions to their super will be removed, providing older Australians with more flexibility in how and when they contribute to their super.

    People aged 67-74 who would like to claim a tax deduction on contributions will still need to complete a work test declaration or meet the work test exemption from 1 July 2022.

  • ‘Bring-forward rule’ now accessible up to age 75

    From 1 July 2022, the cut-off age for the 'bring forward rule' will raise from 67 to 75*, providing older Australians more opportunity to make significant contributions to their super.

    The ‘bring-forward rule’ allows people in certain circumstances to ‘bring forward’ contributions from future financial years, if they wish to make non-concessional contributions in excess of $110,000 within a single financial. People who opt to ‘bring forward’ their contributions can do so for up to three financial years in advance – meaning they can contribute up to $330,000 within a single financial year. 

  • Reduced pension minimum drawdown extended to 30 June 2023

    In response to COVID-19, the Federal Government temporarily reduced the minimum pension payment requirements for allocated pensions by 50% for the 2019/20, 2020/21, and 2021/22 financial years.

    This measure was designed to reduce the need to sell investment assets to fund minimum drawdown requirements, providing older Australians with flexibility during uncertain times

    This temporary reduction was expected to end on 30 June 2022, but has since been extended to 30 June 2023. 

Advice is only a phone call away

We appreciate that with these rule changes you may be considering making changes to your super.

Prior to making any changes to your super we recommend seeking financial advice. As part of your membership, our Helpline Advice team can provide financial advice about your super fund at no additional cost. You can make an appointment with this team by calling our Helpline on 1800 682 525 between 8am-7pm (AEST/AEDT), Monday-Friday..


* Individuals have 28 days from the day they turn 75 to make non-concessional (and other voluntary contributions), following that we are only able to accept Super Guarantee and Downsizer contributions. In addition to this, to use the ‘bring forward rule’ you must have been under the age of 75 for at least one day in the financial year that you first trigger it.

This page has been prepared on behalf of Mercer Superannuation (Australia) Limited (‘Mercer Super’), ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981. Any advice contained is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2022 Mercer LLC. All rights reserved.