For contributions, other than mandated contributions made by your employer, such as the 10% superannuation guarantee contribution (2021/22), you need to first be eligible to make the contribution. Eligibility is based on your age and employment situation:
- People under age 67 can make a contribution to super regardless of their employment situation (the age limit was increased from 65 to 67 effective from the 2020/21 financial year);
- People aged from 67 to 70 can make all types of contributions but must satisfy the work test. The work test is defined as having been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in the financial year;
- People aged 70 to 75 can only make personal or receive compulsory employer contributions but must satisfy the work test – ie. have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in the financial year; and
- People aged 75 and over cannot make contributions to super, unless they are compulsory employer contributions.
Employers are required to make superannuation guarantee payments for eligible employees of all ages.
- The 2021 Federal budget has proposed allowing individuals aged 67 to 74 to make or receive non-concessional contributions or salary sacrifice contributions without meeting the work test from 1 July 2022. Individuals aged 67 to 74 years will be able to make personal deductible contributions subject to meeting the work test.
- Those aged 65 or over, and meet the other relevant eligibility criteria, can make a downsizer contribution. Note the 2021 Federal Budget has proposed reducing the eligibility age to make downsizer contributions from 65 to 60 effective from 1 July 2022.
- From 1 July 2019, there will be an exemption from the work test for voluntary contributions to superannuation – for people aged 67-74 with superannuation balances below $300,000, in the first year that they do not meet the work test requirements.