• 107 Online
  • 23304 Members
  • 27269 Posts

ATO Community

Re: What does "gainfully employed" mean for the super guarantee work test?

Ask a question

Enthusiast

Views 316

Replies 2

Follow on from this thread :

https://community.ato.gov.au/t5/General-super-questions/What-does-quot-gainfully-employed-quot-mean-...

 

Can a person be "gainfully employed" by a family member, to perform domestic duties (washing, ironing, cleaning, cooking, shopping, etc) for 40 hours in 30 days, and pass the "work test" ?

Not concerned about tax deduction/s for the wages actually paid, more the eligibility to make contributions after age 65.

 

What is the ATO's attitude to such genuine arrangement/s ?  Or Part IVA ?

I'm searching for something authorative or definitive, rather than just opinion.

TIA's for any tips or clues.

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Best answer

Anonymous

Replies 1

Hi @bgroper 

 

This forum is designed to provide general type information, and if you really want a definitive answer to this topic the better approach is to apply for an ATO Private Ruling  and this will give you the opportunity to discuss with the ATO officer that is going to provide the response.

 

If you need assistance in completeing the Private Ruling request phone the ATO 13 28 61.

 

 

 

2 REPLIES 2

Best answer

Anonymous

Replies 1

Hi @bgroper 

 

This forum is designed to provide general type information, and if you really want a definitive answer to this topic the better approach is to apply for an ATO Private Ruling  and this will give you the opportunity to discuss with the ATO officer that is going to provide the response.

 

If you need assistance in completeing the Private Ruling request phone the ATO 13 28 61.

 

 

 

Highlighted

Initiate

Replies 0

Hello bgroper,

I read that you want something definitive and MVF's approach should give you that answer but in my experience ATO seems reluctant.

I know that I have failed to find anything on the ATO website that clearly spells this out.

I rang the ATO and was told that paid work was required and the auditor of our SMSF would determine eligibility to make super contributions. (For the past two years my auditor has been satisfied with the documentation and I have declared the earnings on my personal tax return.)

I think the key would be to have kept records (diary) of times and amounts should an audit be required.

I have copied the following from the ATO website (QC19749).

Work test

If you are 65–74 years old, you need to satisfy a work test in each financial year that a voluntary super contribution is made to your fund.

The work test requires you to be gainfully employed. To satisfy the work test, you must work at least 40 hours during a consecutive 30-day period each financial year in which the contributions are made.

Note: Unpaid work does not meet the definition of 'gainfully employed'.

   

Top Solution Authors