As from 1 July 2020 you can continue to contribute to superannuation up to the age of 67 (previously 65) without having to pass the work test.
This brings this rule in line with the age pension eligibility test.
If you are over 67 you have to pass the work test which is working for gain or reward for at least 40 hours within a period of 30 consecutive days or less in the financial year you wish to contribute.
There are limited circumstances someone older can still contribute after 67 up to age 75.
- A downsize contribution whereby you can contribute up to $300,000 (single) or $600,000 (couple) from the proceeds of the sale of your home when moving to a new residence and/or
- Where you pass the ‘Work Test Exemption’ whereby
- You have met the work test exemption in the previous financial year
- Your total super balance across all funds at 30 June of the previous year is less than $300,000 and
- You have not used the work test exemption in any previous year
The table below summarises when and what can be contributed to super post age 67.
| Age | Employer contributions | Personal contributions | |||
| Voluntary employer contributions (e.g. salary sacrifice) |
Mandated employer contributions2 | Concessional & non- concessional member contribution |
Spouse contributions | Downsizer contributions1 | |
| 67-74* | Yes (work test or work test exemption required) | Yes | Yes (work test or work test exemption required) | Yes (work test or work test exemption required for receiving spouse) |
Yes |
| 75 and over |
No | Yes | No | No | Yes |
1If you are aged 65 or older and meet eligibility requirements, you may be able to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home. Please speak with your financial adviser or see the ATO website for further information about how to qualify for and make a downsizer contribution. 2Mandated employer contributions include Super Guarantee contributions, and employer contributions required under an industrial award or certified agreement. *This includes 28 days after the end of the month in which you turn 75.
What you need to do
To ensure we can continue to accept any valid voluntary contributions, please complete and return the enclosed Employment declaration form as soon as possible.
If you have not yet met the required working hours but anticipate doing so, please retain the declaration and return it to us on completion of the required hours. Please note, we cannot accept your voluntary contributions until you provide us with your Employment declaration form.
If you do not anticipate making a contribution to your superannuation account during this financial year please disregard this letter. No action is required.
What happens if you do not make a declaration?
If a contribution (for which the employment declaration is required) is made to your account and we haven’t received your completed declaration form, we will be unable to accept the contribution and it may be returned.
How long does the declaration remain valid?
The completed employment declaration will remain valid for the remainder of this financial year.
More information
If you would like further information or assistance, please contact us.
This article appeared in our August 2020 newsletter. Author: Stephen Mason
