A Bill implementing the Government’s key 2021-22 Federal Budget super changes recently passed parliament and received Royal Assent.
Regulations have now been registered which remove the existing requirement for a work test (or a work test exemption) to be satisfied for a super fund to accept most types of voluntary contributions made for members aged 67 to 74.
Under the new rules, which apply for contributions made from 1 July 2022:
- A super fund can accept most contributions made for a member while they are under age 75 (including the period up to 28 days after the end of the month in which they turn 75), regardless of their work status. This includes downsizer contributions made from the new minimum eligibility age of 60.
- A super fund can only accept mandated employer contributions and downsizer contributions where a member is aged 75 or over (and the 28 day period after the end of the month in which they turn 75 has passed).
The Regulations have clarified that the work test has been removed for most voluntary contributions including:
- non-concessional contributions
- salary sacrifice
- voluntary employer contributions
- lifetime CGT cap contributions
- personal injury payment contributions
Personal deductible contributions
The work test will still apply for these contributions.
Where a member makes a personal contribution on or after 1 July 2022 while aged 67 to 74 (including the period up to 28 days after the end of the month in which they turn 75) which they wish to be a personal tax-deductible contribution, they will still need to satisfy the work test (or work test exemption) during the income year of contribution as a requirement to claim a tax deduction for the contribution.
