The Government has released draft legislation and regulations for the proposed one year exemption to the ‘work test’.
People aged 65 to 74 are restricted from making voluntary superannuation contributions, unless they pass the so-called work test of at least 40 hours gainful employment in 30 consecutive days in the relevant financial year.
The Government has released draft legislation for a proposed, and limited, exemption to this rule. This was first announced in the 2018/19 Budget.
If legislated, people aged 65-74 with a Total Superannuation Balance under $300,000 would be able to make voluntary super contributions for 12 months from the end of the last financial year in which they met the work test.
“This legislation will give eligible older Australians an extra year to boost their superannuation, so they can better prepare for retirement,” said Assistant Treasurer Stuart Robert.
The changes are proposed to apply from 1 July 2019.
The Coalition had a policy of completely repealing the work test in the 2016/17 Budget. However this was dropped to offset the cost of other subsequent changes.
The draft legislation also includes changes to the non-concessional contribution bring-forward rules around ‘work test exemption contributions’.