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LeighF(Newbie)Registered Tax Professional
15 May 2023

Taxpayer is aged 67-74 & their only employment is the management of commercial investment properties on behalf of the family. He does not receive a fee for services but the properties are better maintained & likely values are increased by him doing so. He does receive an equal % of the net rent for taxation purposes.


He would complete 40 hours or more in a 30 day period to attend to the above. Would this pass the "Gainfully Employed" criteria for the Works Test in order to claim a deduction for superannuation contributions made?

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Bruce4Tax(Taxicorn)Taxicorn
15 May 2023

That is passive income - does not satisfy work test.


See Work Test:

https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=8#Worktest


LeighF(Newbie)Registered Tax Professional
15 May 2023

Thanks @Bruce4Tax, appreciate the response.


This taxpayers situation is a little different in that he is actively "working" within his own business of owning & managing commercial investment properties. Not just sitting back & accepting the rent monies from a Real Estate Agent.


So my question is not really covered in the ATO correspondence you'd attached - hence why I reached out to the ATO Community on this one.


Would appreciate someone's thoughts on this situation. If still recommending it is passive & he wont support the meaning of "gainful employment", then comfortable that he wont receive a tax deduction for contributions made :)


Thanks

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Deductible Super Contributions - If a taxpayer is aged 67-74 | ATO Community