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Work test over 65

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If you work as a consultant or trainer, but jobs might be, say, five hours here and there each time - over 40 hours per year but not within a 30-day period - surely this is still a pass on the work test?  Second question - if you work as a trainer, conduct upfront training for 8 hours, but spend 32 hours preparing your material, both within 30 days - have you passed the work test?

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ATO Community Support

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Hi @allgood

 

Thanks for your question.

 

@Bruce4Tax is correct. To meet the work test, you must have worked at least 40 hours within 30 consecutive days in a financial year. It doesn't have to be in a particular month but it must be within 30 days.

 

You can check out the definition of work test on our website.

 

How you do it doesn't matter. Eight hours every Monday for five weeks in a row meets the test. 40 hours in four days meets the test. A few hours here and a few hours there that adds up to 40 hours in 30 days meets the test. It just needs to be 40 hours in 30 days.

 

How you satisfy the work test is ultimately between you and your fund, however you do need to ensure that the hours that you are counting towards the test were for gainful employment.

 

This means employed or self-employed for gain or reward in any business, trade profession, vocation, calling, occupation or employment.  Gain or reward is the receipt of remuneration such as wages, business income, bonuses and commissions, in return for personal exertion from these activities.  It does not include the passive receipt of income.

 

@Bruce4Tax is correct on the second point too. Whether the 32 hours of preparation time counts towards the test will depend on the nature of the work arrangement and how you are being paid for it.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2

Devotee Registered Tax Practitioner

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1.   Work test  =  40 hours paid work within 30 consecutive days.

 

Not 40 hours per year.

 

2.  This could be arguable, if in fact the payment received for the 8 hours delivery time compensated for the 32 hours prep time.

 

This may depend on the facts.

 

 

Most helpful response

ATO Community Support

Replies 0

Hi @allgood

 

Thanks for your question.

 

@Bruce4Tax is correct. To meet the work test, you must have worked at least 40 hours within 30 consecutive days in a financial year. It doesn't have to be in a particular month but it must be within 30 days.

 

You can check out the definition of work test on our website.

 

How you do it doesn't matter. Eight hours every Monday for five weeks in a row meets the test. 40 hours in four days meets the test. A few hours here and a few hours there that adds up to 40 hours in 30 days meets the test. It just needs to be 40 hours in 30 days.

 

How you satisfy the work test is ultimately between you and your fund, however you do need to ensure that the hours that you are counting towards the test were for gainful employment.

 

This means employed or self-employed for gain or reward in any business, trade profession, vocation, calling, occupation or employment.  Gain or reward is the receipt of remuneration such as wages, business income, bonuses and commissions, in return for personal exertion from these activities.  It does not include the passive receipt of income.

 

@Bruce4Tax is correct on the second point too. Whether the 32 hours of preparation time counts towards the test will depend on the nature of the work arrangement and how you are being paid for it.

 

Hope this helps.

 

Thanks,

 

ChrisR