When you reach a certain age there are limits on how much you can put into super. These limits also depend on whether you have met the work test. But what exactly is the work test?
To be eligible to make contributions to your super, if you are aged 65 to 74, you must have worked for at least 40 hours over 30 consecutive days in the financial year you wish to make a contribution. This work must be classified as gainful employment. In other words it cannot be volunteer work or unpaid work (such as sitting on a board for no remuneration).
So once you approach age 65 you must consider if you will continue to meet this test as well as know exactly what your contribution cap will be. For the recent changes regarding the new contributions cap please see our blog on Changes to Contribution Caps.
And don’t forget, once you reach 75 years of age you can only make your mandated contributions to super. These are your superannuation guarantee contributions from your employer.
To find out more about whether you have met the work test contact Your Super Specialist here.
We can work with you to optimise your contributions for each financial year.
The ATO also have some very helpful articles regarding the work test and when you can make contributions to your super fund. To find out more please see the below link: https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/SMSF-resources/SMSF-technical/Returning-contributions/?page=3
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.