How To Guide: Super Contributions you need to know:
The following guide will outline some super contributions you need to know. It must be noted there are strict legislative frameworks around making contributions to your super once you turn 67. Upon turning 67 you must meet a ‘work test’ for particular contributions. Depending on your age, there are some contributions that cannot be made at all, even if you meet the work test outlined below.
To satisfy the work test, you must meet the following:
- You need to work at least 40 hours over 30 consecutive days in the financial year.
- This must be satisfied unless you are eligible for the work test exemption.
It is advised that those who wish to make contributions to their super pay close attention to ensure you meet these requirements before making a contribution. If you think you satisfy the work test, please be in touch with your adviser 14 days before making a contribution.
If you make a contribution and do not meet the work test, this amount will be refunded to you. However, it must be noted that this may have implications for your tax return in the financial year the contribution was made.
Please see the table below for a summary of whether you can make a contribution to your super account:
This is not inclusive of those who are applying for a downsizer contribution.
If you do not meet the work test you may be able to meet the exemption which is as follows:
- You must be aged between 67-74,
- You must have met the work test in the previous financial year,
- Your total super balance prior to June 30 must not exceed $300,000 and,
- The exemption can only be applied once in your lifetime.