Morrison government promises ‘super boost’ from 1 July 2020

On Monday, the Morrison government announced it is taking action to help Australians boost their retirement savings by giving them greater flexibility as they near their retirement years.

Currently, Australians aged 65 and 66 can only make voluntary contributions if they meet the work test, which requires that they work a minimum of 40 hours over a 30-day period.

The proposed change is expected to align the work test with the eligibility age for the age pension, which is scheduled to reach 67 from 1 July 2023.

"There are around 55,000 Australians aged 65 and 66 who will benefit from this reform in 2020-21," said Treasurer Josh Frydenberg.

"In addition, we will increase the age limit for spouse contributions from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf."

The Morrison government also pledged to extend access to the bring-forward arrangements, which currently allow those aged less than 65 years to make three years’ worth of non-concessional contributions, which are capped at $100,000 a year, to their super in a single year. 

"This will now be extended to those aged 65 and 66," Mr Frydenberg said. 

According to the Treasurer, these reforms build on the government’s plan to make sure Australia’s $2.7 trillion superannuation system is working in members’ best interests.