End of the Work Test – well kind of

Prior to 1 July 2022, individuals aged between 67 and 75 needed to satisfy a work test, of 40 hours work in 30 days, prior to making a voluntary superannuation contribution in order for it to be accepted. This work test requirement has now been removed for the following contributions;

  • Non-Concessional Contributions
  • Salary Sacrifice
  • Lifetime CGT contributions

However, the potential trap is that the work test (albeit in a changed format) still applies for those who want to claim a tax deduction for their contribution (a common strategy to reduce tax on a capital gain from the sale of an asset) and have had their 67th birthday when the contribution is made.

In summary, if you are not working, contributions must be made before your 67th birthday in order to claim a tax deduction.

If you are working then you can contribute up to age 75. Note the new work test can be passed at anytime during the financial year the contribution is made.

Lindsay 0413 952 180

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