From 1 July 2022, the ‘work-test’ requirement has been removed completely for non-concessional contributions, meaning eligible individuals can make non-concessional contributions to super until they turn 75, assuming they are below the total super balance threshold on 30 June of the prior financial year.
Previously individuals over age 67 needed to meet the ‘work-test’ which meant they needed to be gainfully employed for 40 hours in a 30 day period during the financial year, to be able to make non-concessional contributions. Please note that the requirement to meet the ‘work-test’ still applies if you are wanting to make personal contributions that you intend to claim a tax deduction for.
The change in rules means individuals can contribute $110,000 to superannuation each year or utilise the bring-forward provision and contribute 3 years’ worth ($330,000) in a single year, up until age 75, assuming they are below the total super balance threshold. A lower limit may apply when accessing the bring-forward provision.
Please don’t hesitate to contact our office if you would like to understand your eligibility to contribute to superannuation. As we have seen in recent years, the contribution rules often change and it is important to understand the current legislation and contribution limits.