Super contribution rules for over 65s

Updated rules from the Federal Government allow Australians who choose to stay in the workforce to continue to contribute to their super balance.

The Federal Government has increased the age that people can make super contributions without having to meet a work test. You can also make contributions until age 67.

The work test requires that you be in paid employment for a minimum of 40 hours in any consecutive 30-day period in the financial year. This will allow you to make voluntary super contributions.

Currently, the work test only applies for people aged 67-74 however from 1 July 2022, if you are under 75 years old, you can make or receive personal super contributions and salary sacrificed contributions (subject to existing contribution cap limits) without meeting the work test. However, those aged 67 to 74 will need to meet the work test if they wish to claim a personal super deduction. People aged 65 or 66 can make both concessional (pre-tax) or non-concessional (after-tax) contributions regardless of whether they are working or not.

Increased age limit for spouse contributions

The government raised the cut-off age for a person to receive contributions from their spouse. The age was increased on 1 July 2020 to 74 from 69. This will allow a receiving spouse to build their superannuation balance for longer, assuming they meet the work test from age 67.

Spouse contributions count towards a person’s after-tax non-concessional tax limit.

Is there a work test exemption?

Recent retirees aged 67-74 are eligible to apply for a work test exemption. This allows people with a total superannuation balance below $300,000 at the end of the previous financial year to be able to make voluntary super contributions for 12 months from the end of the financial year in which they last met the work test.

The work test exemption can be applied only once.

For spousal contributions, the work test exemption applies to the receiving spouse.