In the recent past, SuperGuide has made a lot noise about the inequity of the SG rules for older workers. When you choose to work beyond the age of 69 you miss out on
We now have good news! As part of the Federal Government’s response to the Henry Tax Review, the Treasurer Mr Swan has announced that workers aged 70 to 74 will be eligible for SG contributions.
According to the Federal Government, around 33,000 employees will benefit from this change. You have to wait awhile however. The rules will not change until the 2013/2014 year (that is, from 1 July 2013) – at least three years away. The change for older workers coincides with the phased increase of the SG rate (see article Superannuation Guarantee set to jump 33%)
Note: Individuals aged 70 to 74 are currently able to make voluntary concessional (before-tax) or non-concessional (after-tax) superannuation contributions, subject to meeting a
Hi,
I am confused. I currently work only 7 hours per week as a bookkeeper.
When I turn 65 years will I still receive a superannuation payment
from my company or will my low hours not conform with the work test?
thanking you in anticipation
Margaret
Hi Margaret
You ask a very good question. The rules relating to Superannuation Guarantee are different to the requirements for making voluntary contributions. If you earn more than $450 a month, then your employer must pay SG contributions. The work test relates to voluntary super contributions – 40 hours in a 30-day period. I encourage you to check with your employer whether you receive any Superannuation Guarantee entitlements. Note that the main test is linked to monthly earnings ($450) rather than the number of hours worked. If eligible, an employer must pay any SG entitlements at least quarterly. You can also check with your super fund to see if SG payments have been made.
You can find a lot of information on Superannuation Guarantee on our website by typing in ‘Superannuation Guarantee’ into our search function.
Regards
Trish