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Re: Working after retirement

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Newbie

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I have recently retired taking my super as a lump sum. I’ve been offered the opportunity of casual work. I’m aware I can work up to 10hrs with no issue but what if some weeks during busy times  I’m offered more hours on a casual basis? Do I have to say no & stick with 10 hrs or can I work the extra? 

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Devotee

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Hi @1958 

 

This depends on your age when you retired and which of the "retirement condition of release" did you apply for to access your superfund.

 

If you were age 60 or above when you stopped working, then you could meet the "retirement condition of release" in 2 different ways: 

 

1. You have ceased a gainful employment arrangement on or after turning age 60 (meaning you have left work, irrespective of the reason behind, after attaining age 60). If this was the condition you selected then technically you are allowed to return to work at some future point (regardless of capacity whether casual part-time or full-time, you can become employed again).. The legislation here doesn't prohibit you from going back to gainful employment after claiming super under "retirement". However, bear in mind that any subsequent contributions made by you or on your behalf (i.e. employer SG contribution) will be preserved until a further condition of release is satisfied.

 

2. You declared retirement by stating that you intend to never again become gainfully employed for 10 hours or more each week going forwad. If this was the condition you chose instead, then you must commit to your words, as the paperwork you would have completed at the time of applying for access to super is a statutory declaration, which could have implications if broken. You should avoid entering into an employment arrangement if you are uncertain about working less than 10 hours in any given week.

 

Hope this helps

R

 

 

 

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Best answer

Devotee

Replies 0

Hi @1958 

 

This depends on your age when you retired and which of the "retirement condition of release" did you apply for to access your superfund.

 

If you were age 60 or above when you stopped working, then you could meet the "retirement condition of release" in 2 different ways: 

 

1. You have ceased a gainful employment arrangement on or after turning age 60 (meaning you have left work, irrespective of the reason behind, after attaining age 60). If this was the condition you selected then technically you are allowed to return to work at some future point (regardless of capacity whether casual part-time or full-time, you can become employed again).. The legislation here doesn't prohibit you from going back to gainful employment after claiming super under "retirement". However, bear in mind that any subsequent contributions made by you or on your behalf (i.e. employer SG contribution) will be preserved until a further condition of release is satisfied.

 

2. You declared retirement by stating that you intend to never again become gainfully employed for 10 hours or more each week going forwad. If this was the condition you chose instead, then you must commit to your words, as the paperwork you would have completed at the time of applying for access to super is a statutory declaration, which could have implications if broken. You should avoid entering into an employment arrangement if you are uncertain about working less than 10 hours in any given week.

 

Hope this helps

R

 

 

 

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Devotee

Replies 1

Hi @1958 

 

@Azhai  has summed things up pretty well below I think. Just going on from dot point 2 - circumstances in life can change and generally speaking, a person can return to work after retiring, but at the time of retiring the intention must have been genuine.

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Anonymous

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Hi @SebReiter 

 

as you probably remember we have discussed genuine intent before on this post https://community.ato.gov.au/t5/General-super-questions/Superannuation-and-return-to-work/m-p/13008#...

 

As you know its been my view that "intent" can be determined through a persons own actions.

 

Recently when looking at the FHSS I came across this in relation to genuine intent: 

 

Paragraphs 1.181 to 1.183 of the Explanatory Memorandum  stating: 

" However, an individual could be regarded as having never had the intention to occupy the dwelling for the necessary period if they made no efforts to do so, or if the reasons for not having done so were entirely within their control. For example, if an individual purchased a dwelling and within a short period of time listed it on the rental market under a 12 month lease, it is unlikely that they would be able to demonstrate that they had intended to occupy the dwelling. "

 

Now I realise this relates to totally seperate legislation but the principles for genuine intent would in my opinion apply just as equally to any other legislation, as demonstrated per the case law in our prior discussions.

 

If we take the above EM extract, then if as a matter of choice someone goes back to work immediately  or within a short period of time after retiring (for more than 10hrs per week) then it would be unlikely that they would be able to demonstrate that they had intended to retire.

 

Just wondering what views if any you would have?

 

@Miccles  @Azhai  and anyone else .... any views ??