Change to the work test

Are you between 67 and 75 years? If so, here’s some good news about the work test that could help to grow your super.  

If you’re 67 or older, the annual work test is used to prove you are gainfully employed*. Meeting the test requirements means you can continue to contribute to super and enjoy its tax benefits. 

From 1 July 2022, you can make or receive after-tax super contributions and salary sacrificed contributions without meeting the work test, provided you remain under the current annual contribution caps and your balance is less than $1.7 million. 

Here’s how it works: 

• If you’re making contributions to your super, you can continue to make before-tax contributions up to $27,500 a year, minus any other before-tax contributions you receive, such as employer contributions. You may also have a higher before-tax limit, if you have ‘unused’ amounts from previous years. 
• If your total super balance is less than the after-tax contributions cap, you can now  make additional after-tax contributions up to $110,000 a year. You may also use the ‘bring forward’ rule to make after-tax contributions of up to $330,000. 
  

That said, if you want to make an after-tax contribution for which you plan to claim a tax deduction (referred to as a ‘personal deductible contribution’), then you still have to meet the work test requirements. 

First proposed in the 2021-22 Federal Budget, this measure could be a further boost to anyone wanting to add to super after turning 67.  

* For 40 hours or more in any 30-day period in a financial year in which you make the contributions. 

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