12 month superannuation work test exemption to apply from 1 July 2019

Older Australians will have a limited exemption from the superannuation ‘work test’, with the Government making regulations to implement the measure.

The ‘work test’ limits the ability of older people to make superannuation contributions to those that are working more than a certain amount.

The Coalition had announced the complete repeal of the work test in the 2016/17 Budget, but this was later dropped. In the 2018/19 Budget a much more limited exemption from the work test was announced, and has now been implemented. Read more...

One year superannuation work test exemption draft legislation released

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. Read more...

Work Test for superannuation contributions

The ability of people aged 65 and over to make personal contributions or non-super guarantee contributions is limited by what is referred to as the ‘work test’.

The work test is created by regulation 7.04 of the Superannuation Industry (Supervision) Regulations 1994 – which sets out the requirements for a super fund to accept contributions. Item 2 of the table requires, for a member who is “is not under 65, but is under 70” that:

“if the member has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made” Read more...