- A work test rule for those aged 67-75 will be abolished
- The rule required those in the age cohort to work 40 hours a week over less than 39 weeks
- The new rule is expected to come into effect from 1 July 2022
A rule requiring those aged at least 67, but under 75, to have to be gainfully employed for at least 40 hours over less than 31 continuous days in order to make super contributions will be abolished.
Without satisfying any work test those aged under 75 will be able to:
- Make personal, non-concessional contributions including — if eligible — use the three-year, bring-forward rule
- Make salary sacrifice contributions
The Total Super Balance limitation – that is, restricting or removing the ability to contribute is a person's TSB is above $1.48m in the 2021/22 financial year – will remain in place.
It seems the rule that permits contributions for those gainfully employed in the immediately previous financial year and a Total Super Balance of less than $300,000 will remain in place.
Existing policy to permit those aged at least 65 but under 67 to make personal non-concessional deductible contributions appears to have been superseded
The change will commence from the start of the first financial year after the enabling legislation receives Royal Assent. At this point, the government expects this to be from 1 July 2022 onwards. Regulation changes removing the work test might be put in place much earlier but we will have to wait and see.
The government's existing policy to permit those aged at least 65 but under 67 to make personal non-concessional contributions appears to have been superseded. This policy was permitted by regulation but the legislation to put in place the bring-forward mechanism has not been legislated.
Sadly, it would appear that those wishing to make personal tax-deductible contributions in this age cohort will still need to satisfy the work test.
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