HQB’s Weekly SMSF News – Week 12
Work test – do I need to be working to contribute extra funds to superannuation?
- Under current rules, if you are aged 67 or older (up to age 74) you need to meet a “work test” to make personal (concessional) contributions for which you claim a tax deduction.
- The government has recently removed the “work test” requirement for making non-concessional contributions for those aged 67 and older.
- Note: if you are aged 75 or older your SMSF cannot accept any personal contributions, concessional or non-concessional.
- To meet the work test, you must be gainfully employed for at least 40 hours during a consecutive 30-day period in the financial year in which the contributions are made. This is an annual test.
- Gainfully employed can mean self-employed, but not unpaid work.
- There is an exemption that can apply under certain conditions that may allow you to still make non concessional contributions in the year after you ceased work.
If you think the work test may apply to you and you would like to know more, please get in touch with us.
– Brad Sheaves
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.