Federal Treasurer Josh Frydenberg unveiled new superannuation measures on the eve of releasing the 2019-20 Budget in a bid to win over retirees.
Frydenberg announced yesterday that 65 and 66-year-olds will be able to make voluntary superannuation contributions, both concessional and non-concessional, without being required to meet the work test.
The current rules restrict voluntary contributions to meeting the work test of working a minimum of 40 hours over a 30-day period.
From 1 July 2020, 65 and 66-year-olds who don't meet the work test can make voluntary contributions to their super.
"This will align the work test with the eligibility age for the Age Pension, which is scheduled to reach 67 from 1 July 2023," Frydenberg said.
He is also proposing to increase the age limit for spouse contributions from 69 to 74 years old. Currently, 70-year-olds and over cannot receive contributions made by another person on their behalf.
Furthermore, access to bring-forward arrangements will be extended to those aged 65 and 66. Currently, 65-year-olds and under can make three years' worth of non-concessional contributions capped at $100,000 per year to their super in a single year.
"We have introduced new laws that reunite superannuation members with low balance or inactive accounts, scrapped exit fees and other excessive fees, and introduced legislation to protect Australians paying premiums for insurance they don't want or need," he said.