The bill moves the work test out of the SIS regulations and into the Tax Act in order to facilitate the repeal of the work test for individuals 67 to 75 years of age for non-concessional contributions.

The bill also amends the ITAA 1997 to allow superannuation trustees to choose their preferred method of calculating exempt current pension income when they have member interests in both accumulation and retirement phases for part, but not all, of the income year.

It also increases the limit on the maximum amount of voluntary contributions that can be made under the First Home Super Saver Scheme from $30,000 to $50,000 and reduces the eligibility age for making downsizer contributions from 65 to 60 years of age.

Assistant Treasurer Michael Sukkar said this would allow more older Australians to “consider downsizing to homes that better meet their needs, increasing the supply of larger homes for young families”.

“From 1 July 2018 to the end of January 2022, 36,800 individuals have contributed $8.9 billion to their superannuation under this measure,” said Mr Sukkar.

The bill also removes the $450 per month income threshold under which employees do not have to be paid the superannuation guarantee by their employer.

“This will remove an outdated structural feature of the superannuation system and in doing so will improve equity in the system,” said Senator Jane Hume.