A new superannuation contributions opportunity has been opened from 1 July 2019 for individuals aged between 65 and 67 in their first financial year after retirement. Several conditions apply, including the requirement that a person’s Total Superannuation Balance (TSB) is less than $300,000 at the end of the financial year prior to their contribution.

Existing super rules require someone between age 65 and age 75 to meet a “work test” where they must work at least 40 hours within a continuous 30-day period before they make a superannuation contribution.

The new “work test exemption” means that those aged 65 to 67 are able to make voluntary contributions to super without meeting the work test in the first financial year after they have retired. This opportunity is only available if the $300,000 super balance rule allows their contribution.

Importantly, no changes have been made to the “bring forward rule” for non-concessional contributions to super. The maximum non-concessional contribution available under this new work test exemption is $100,000 unless the bring-forward rule has been previously triggered in the financial year in which you turned age 65, and you have some remaining space within your 3 year concessional contributions limit.

The $25,000 concessional contributions cap is also available to be used under the new work test exemption and associated rules.

WSC Group - Private Wealth Pty Ltd ACN 632 928 691 is an authorised representative #1275915 of Merit Wealth Pty Ltd ABN 89 125 557 002. General Advice Warning: This advice may not be suitable to you because contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns