November 14, 2019   |   Tips

Super contributions & the work test

When it comes to super contributions, employees between the age of 65 and 75 years old are subject to the “work test”.

What is the work test?

The ATO defines the work test as;

‘Applicable once you turn 65 years old until you turn 75 years old, you must have worked at least 40 hours within 30 consecutive days in a financial year before your super fund can accept any non-concessional contributions…’

Non-concessional contributions include the following;

  • Personal contributions;
  • Spouse contributions; and
  • Government co-contributions

What can be accepted by super funds?

Once you have reached 65 years of age (and still below 75 years of age), a super fund will accept mandated employer contributions*.  In fact, super funds will accept mandated employer contributions for its members at any time, regardless of their age or the number of hours they’re working.

Once you hit age 75, however, your super fund will generally be unable to accept further contributions into your super account.

What’s considered mandated employer contributions?

Mandated employer contributions are contributions made by an employer under a law or industrial agreement for the benefit of a fund member.

These contributions include super guarantee payments made to employees as required under the Superannuation Guarantee (Administration) Act 1992