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Superannuation Work Test

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I will be 67 before June 30, 2020. I will finish full time paid employment on Feb 29, 2020. From March 1 2020 I will be a contractor with a personal Pty Ltd company. I estimate I will have paid work for 100 days in the 2020/2021 tax year. Will this meet the Work Test for non-concessional super contributions?
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ATO Certified Response

Devotee Super Specialist

Replies 0

Hi @Pete13,

 

Once you turn 65 you must satisfy the work test .  This means you must have worked at least 40 hours during a consecutive 30-day period in the financial year you want to make the contribution.

 

You may be exempt from the work test if you:

  • Met the work test in the previous financial year; and
  • Have a total superannuation balance below $300,000 at 30 June of the previous financial year; and
  • Have not made or received a work test exempt contribution in any previous financial year.

Once you reach the age of 75, you’re unable to make super contributions regardless of your working status. Your employer can make contributions regardless of your age. The other exception is for Downsizer contributions.

 

You can find the ATO’s work test definitions on their website under work test and work test exemption. You may also wish to have a look at QSuper’s Working in Retirement page.

Thanks
Hailey

2 REPLIES 2

Devotee Registered Tax Practitioner

Replies 0

Work test is 40 hours in 30 days.  So as long as you have done that, you can make NC contributions.

 

Most helpful response

ATO Certified Response

Devotee Super Specialist

Replies 0

Hi @Pete13,

 

Once you turn 65 you must satisfy the work test .  This means you must have worked at least 40 hours during a consecutive 30-day period in the financial year you want to make the contribution.

 

You may be exempt from the work test if you:

  • Met the work test in the previous financial year; and
  • Have a total superannuation balance below $300,000 at 30 June of the previous financial year; and
  • Have not made or received a work test exempt contribution in any previous financial year.

Once you reach the age of 75, you’re unable to make super contributions regardless of your working status. Your employer can make contributions regardless of your age. The other exception is for Downsizer contributions.

 

You can find the ATO’s work test definitions on their website under work test and work test exemption. You may also wish to have a look at QSuper’s Working in Retirement page.

Thanks
Hailey