Changes have been made to the Superannuation Industry Supervision (Regulations) to increase the age limit for making superannuation contributions without being required to meet the requirements of the ‘work test’. This was a change announced as part of the 2019-20 Federal Budget.
Previously, individuals aged 65 to 74 must have worked at least 40 hours in a 30 day period to make voluntary superannuation contributions. As of 1 July 2020, the minimum age limit for the work test has increased to 67. This means that anyone aged 65 or 66 can make voluntary superannuation contributions (either concessional or non-concessional), even if they are retired.
It is intended that the age limit for accessing the bring forward of non-concessional contributions will be increased to 67, however the Legislation required to make this change has not yet been passed by parliament.
This change has created an opportunity for anyone that is 65 or 66 and retired to make contributions to superannuation and allows additional time for implementation of contribution strategies. Some people may also have a concessional contribution cap higher than the $25,000 annual cap due to the carry forward of unused concessional contributions, which may create further tax planning opportunities.
If you would like to discuss how this change may impact your personal circumstances, please contact our superannuation specialists on:
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