Draft legislation to provide eligible recent retirees a one-year exemption from the work test for superannuation contributions has been released.
The work test currently provides that people aged 65-74 must work a minimum of 40 hours in any 30-day period in the financial year in order to keep making contributions to superannuation. The draft legislation proposes to introduce an exemption from 1 July 2019 for people aged 65-74 with superannuation balances below $300,000, to allow them to make voluntary contributions in the first year that they do not meet the work test requirements.
Individuals will also be able to access unused concessional cap space to contribute more than $25,000 under existing concessional cap carry forward rules during the 12 months. Existing annual concessional and non-concessional caps ($25,000 and $100,000 respectively) will continue to apply to contributions made under the work test exemption.
This measure was originally announced in the 2018/19 Federal Budget.
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