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Abolition of superannuation work test

Before 1 July 2022 super fund members aged 67-74 could only make personal contributions* into their account if they satisfied the federal government’s ‘work test’. This test required you to have worked for at least 40 hours in a consecutive 30-day period within a financial year.

The government abolished this rule in its 2021 budget, with the change taking effect on 1 July 2022. People aged 67 to 74 can now contribute to their super whether or not they’re still working.

However, the work test may still apply if you intend to claim a tax deduction for any contribution.

Lower age threshold for downsizer contributions

If you’re age 60 or over (and if your super fund allows it) you may be able to make a one-off contribution of up to $300,000 from the proceeds of the sale of your family home, or up to $600,000 as a couple. Before 1 July 2022 the eligible age was 65. There is no upper age limit.

Other criteria apply to downsizer contribution eligibility – you can find out more here.

Wider eligibility to benefit from the bring forward rule

The bring forward rule may let you make a bigger after-tax super contribution in any one financial year than the annual limit (currently $110,000) allows. Under this rule you can use up to three years’ worth of the annual limit over a shorter period, provided you meet the other eligibility criteria.

For example, if eligible you could make an after-tax contribution of $330,000 in the current financial year but couldn’t then make any more after-tax contributions for the next two years.

From 1 July 2022 eligible super members can consider taking advantage of this rule if they’re under the age of 75, whereas previously the cut-off age was 67.

Contribution rules after age 75

Once you reach age 75 you can’t make any more personal super contributions even if you’re still working, although you can still receive mandatory contributions an employer must make by law or under an industrial agreement. However, the rules allow a bit of leeway in that you can make personal contributions until 28 days after the end of the month in which your 75th birthday falls. For example, if your 75th birthday is on 5 September, you could still make personal contributions up until 28 October.

* Personal contributions are funds you decide to pay into your super account from your personal savings or contributions you choose to make from your pre-tax earnings, as opposed to the super contributions an employer must make on your behalf, assuming you’re employed. The usual annual limits continue to apply – currently $27,500 a year for pre-tax contributions and $110,000 a year for after-tax contributions.

What you need to know

Any advice on this website is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), and is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision on whether to acquire, or continue to hold, the product. 

The Target Market Determinations (TMDs) for our financial products (where applicable) can be found at Target Market Determinations (TMDs). The TMDs describe the key features and attributes of an applicable product that affect whether it is likely to be consistent with the objectives, financial situation and needs of consumers in the target market.

Resolution Life is part of the Resolution Life Group and can be contacted via contact us or by calling the phone number mentioned above.