Work test rules are changing!
What’s changing?
From 1 July 2022, if you’re aged from 67 to 74 you’ll be able to make or receive non-concessional (after-tax) and concessional (salary sacrifice) contributions to your super without needing to satisfy the work test1.
The removal of the requirement to meet the work test will provide more flexibility for people aged 67 to 74 to save for retirement through their super.
What if I want to claim a tax deduction on my contributions?
If you want to claim a tax deduction on your contributions after you turn 67, you’ll still need to satisfy the work test.
How can I satisfy the work test?
To satisfy the work test, you must prove that you’re gainfully employed for at least 40 hours in a consecutive 30-day period during the financial year that you make a contribution.
To be considered ‘gainfully employed’, you must receive income from your employment.
When you lodge your tax return with the ATO, they will assess whether you have satisfied the work test or not.
What if I’m 75 or older?
If you’re 75 or over, the only way to contribute to your super is through making a Downsizer contribution or by receiving the super guarantee from an employer.
Want more information?
For more information on the work test rule changes, you can visit the ATO website.
No matter where you’re at in your super journey, a chat with a super expert can help you feel more confident about the decisions you’re making about your super. Give us a call on 1800 005 166.
1 Within your existing contribution cap limits.
Advice on Spirit Super is provided by Quadrant First Pty Ltd (ABN 78 102 167 877, AFSL 284443) and issuer is Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238718), the trustee of Spirit Super (ABN 74 559 365 913). Consider the PDS and TMD at spiritsuper.com.au/pds before making a decision. A copy of the Financial services guide for Spirit Super Advice is available at spiritsuper.com.au/financial-services-guide.