2018 Federal Budget alert! From 1 July 2019, the federal government will introduce an exemption from the over-65s work test for Australians aged 65 to 74 with superannuation balances of less than $300,000, for the first year they don’t meet work test requirement. The full $25,000 concessional cap (plus catch-up concessional contributions) will be available, and the $100,000 non-concessional cap will also be available.
- Does 40 hours in any 30-day period include weekends or is it 6 x 5-day weeks? I read in a bank’s booklet on superannuation that it must be “at least 40 hours in a period of not more than 30 consecutive days during the financial year ….”. This seems to imply working beyond 30 days is not permitted.
- Is there a maximum number of hours and/or days that can be worked in any financial year (40 hours in 30 days is equivalent to 1.33 hrs per day which is not practical)?
We are an information site rather than advisory site so we have to be mindful that we don’t provide you with specific advice.
Background: For the benefit of other readers, I will first explain the work test required for individuals aged 65 and over who want to make super contributions. If you’re aged 65 or over (but under the age of 75), you can make voluntary super contributions if you’re at least gainfully employed on a part-time basis. In short, you must work for at least 40 hours in a period of not more than 30 consecutive days in the financial year in which you plan to make a super contribution. The work test can be satisfied when “employment” involves any endeavour where you receive remuneration for your efforts, including farming, babysitting, cleaning, lawnmowing, gardening, consulting and paid employment. You will need to confirm with the tax office whether your specific arrangements satisfy the work test rules.