Good news for older Australians wanting to save for your retirement. For those age 67-74, you no longer need to meet ‘the work test’ when making a personal super contributions. Prior to 1 July 2022, anyone aged 67-74 had to work ’40 hours in a 30 day period’ in order to put money into super.
But things get a little more complicated for those wishing to claim a tax deduction for a super contribution. The work test DOES apply if you claim a tax deduction on your personal super contributions. This means you do have to in fact have worked at least 40 hours over a 30-day period in the financial year. The ATO oversees eligibility of the tax deduction when you lodge your tax return.
‘Downsizer’ contributions are also available to those selling their home (and certain conditions are met), aged above 60 (soon to be 55), up to a limit of $300,000 per person . The benefit of this is that it doesn’t count towards any contribution caps and no work test is required.
If you are unsure about your ability to contribute to super call or email us and we will guide you through the contribution rules.
Eligibility for Contributions to Super from 1 July 2022
| Age | Employer Contributions | Personal Contributions | Spouse Contributions | |
| Mandated | Voluntary | |||
| Under 75 | Yes | Yes | Yes | Yes |
| 75 and above | Yes | No2 | No1, 2 | No 2 |
1 This does not apply for members who are making an eligible downsizer contribution. Please find more information at ato.gov.au
2 Contributions must generally be accepted no later than 28 days after the month in which you turn 75.
What Can Align Financial Do For You? Visit our homepage to learn more about our service. If you would like to speak to us about your financial circumstance, please feel free to give us a call on 02 9913 9995. We are located in Narrabeen on the Northern Beaches of Sydney.
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Disclaimer: This post has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions. Align Financial | Financial Planner Northern Beaches | Servicing North Narrabeen, Narrabeen, Mona Vale, Elanora Heights, Newport, Avalon, Palm Beach | Enquire with us online
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