As of 1 July 2022 if you are aged between 67 – 74 and want to contribute to super, it may have just become a whole lot easier.
Under previous rules, if you were aged between 67 – 74 and wanted to make a personal contribution to super, you would have been required to meet the ‘work test’ in the year you were making the contribution. This includes salary sacrificed contributions.
This is no longer the case.
The ATO have now removed the ‘work test’ requirement on personal super contributions. However, if you are aged between 67 – 74 and wish to claim a tax deduction for your personal super contributions, the ‘work test’ will still apply.
So, what is the ‘work test’?
To pass the ‘work test’ you must have been gainfully employed for 40 hours or more in any 30 day period in the financial year you are making the contribution. Gainfully employed means you must be employed or self-employed and actually receiving payment; this does not include voluntary work.
The 30 day period does not have to be in the same calendar month. For example, you could work 4 hours every Monday, Tuesday and Wednesday for four consecutive weeks to reach the 40 hour threshold.
It is important to check your eligibility before making personal super contributions. It is a continually changing space with rules catered around age, amount and timing of these contributions.
If you need to speak to an accountant, please reach out to us on (08) 9335 5211.
Other related blogs:
New super contribution limits
How much do I need in super to retire?
Author: Allan Edmunds
Email: allan@faj.com.au
