Superannuation Update

Currently, if you are between 67 and 74 years of age your ability to make superannuation contributions is subject to you being able to satisfy the work test. The work test requires you to work, for reward, for 40 hours in a 30 day consecutive period.

With effect from 1 July 2022 persons aged 67 to 74 will be able to make non-concessional superannuation contributions without having to meet the work test. The ability to take advantage of these new rules will be dependent on your Total Super Balance (TSB). That is, if the total value of your superannuation benefits exceed an amount of $1.7m then you will not be able to make non-concessional contributions to any superannuation fund. The second constraint is the non-concessional superannuation contribution caps. At present the annual non-concessional cap is $110,000. However, subject to your Total Super Balance, you may be able to use the “Bring Forward” rule which allows you to make a contribution of between $110,001 and $330,000 in a single year.