Changes to the work test requirements for superannuation contributions
Soon older Australians will no longer have to meet the work test to make non-concessional contributions.
From 1 July 2022, members under 75 years of age will be able to make or receive non-concessional contributions without meeting the work test, subject to existing contribution cap limits. They may also be able use the bring forward rule.
Fund Trustees will no longer have to administer the work test at the time they accept the contribution.
Removing the requirement to meet the work test when making non-concessional contributions will simplify the rules governing superannuation contributions and increase flexibility for older Australians to save for their retirement through superannuation.
However, those aged 67 to 74 will need to meet the work test if they wish to make a personal concessional contribution for which they intend to claim a personal superannuation deduction.
For those individuals there is no change to the way they lodge their notice of intent to claim or vary a personal super contribution deduction.
The only change is that now the ATO will be checking to see if they meet the work test at the time they lodge their income tax return. The work test must be met during the financial year in which the contribution is claimed.