Jun 7, 2022 Matthew Hung

Work-test repeal – enabling those under 75 to contribute to super

Currently, a work test applies to superannuation contributions made by people aged 67 or over. In general, the work test requires that you are gainfully employed for at least 40 hours over a 30 day period in the financial year.

From 1 July 2022, the work-test has been scrapped and individuals aged younger than 75 years will be able to make or receive non-concessional contributions (including under the bring-forward rule) or salary sacrifice superannuation contributions without meeting the work test, subject to existing contribution caps.  This change may result in some employees deciding to sacrifice some of their existing income to super.  Salary sacrifice arrangements can only operate prospectively, so make sure they are in place early.

The work test will still apply to personal deductible contributions.

This change will also see those aged under 75 being able to access the ‘bring forward rule’ if their total superannuation balance allows. The bring forward rule enables you to contribute up to three years’ worth of non-concessional contributions to your super in one year.