Announcements
The JobKeeper Payment scheme finished on 28 March 2021. Find out what this means for your business.

ATO Community

Super contributions and work test

This post is archived and may not be up-to-date.

I'm new

Views 990

Replies 2

Let us say you have triggered the brought forward rule for non-concessional contributions, and at the start of the third year, you are 65 years of age.  In that third year, do you have to satisfy the work test?  (Please note - it would be difficult to know, at the start of the brought forward period, whether or not you'd still be employed three years later!!!)

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @allgood

 

Thanks for your question.

 

As you were less than 65 when you made the contribution that triggered the non-concessional bring forward arrangement, your age and work status in the third year of the arrangement are irrelevant. You aren't required to predict the future!

 

The work test didn't need to be satisfied as you were less than 65.

 

If you are already 65 by the start of the third year of the arrangement and you want to make another non-concessional contribution, the work test will need to be met for the new contribution. This is because it is based on your age at the time of making the contribution.

 

In other words, they are two different rules. The requirement to meet the work test is based on how old you are at the time of making the contribution. The ability to utilise the non-concessional bring forward arrangement is based on how old you are on 1 July of the year that you trigger it.

 

Check out the link that @Li0 has provided for further information.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2

Enthusiast

Replies 1

If I understand correctly you triggered the three years bring forward rule when you were 62 and you made maximum non-concessional cotributions at that time. Then you don't need to meet the work test when you turn 65 as the contributions was made three years ago. 

 

Have a look on Bring-forward arrangements on the link below:

 

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Super-contributions---too-much...

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @allgood

 

Thanks for your question.

 

As you were less than 65 when you made the contribution that triggered the non-concessional bring forward arrangement, your age and work status in the third year of the arrangement are irrelevant. You aren't required to predict the future!

 

The work test didn't need to be satisfied as you were less than 65.

 

If you are already 65 by the start of the third year of the arrangement and you want to make another non-concessional contribution, the work test will need to be met for the new contribution. This is because it is based on your age at the time of making the contribution.

 

In other words, they are two different rules. The requirement to meet the work test is based on how old you are at the time of making the contribution. The ability to utilise the non-concessional bring forward arrangement is based on how old you are on 1 July of the year that you trigger it.

 

Check out the link that @Li0 has provided for further information.

 

Hope this helps.

 

Thanks,

 

ChrisR