Q: If employers must now make Superannuation Guarantee contributions for over-70s, does this mean that additional concessional or non-concessional contributions can also be made by those aged over 75?
A: The short answer is ‘no’. Although employers are now required to make Superannuation Guarantees for any eligible employee, regardless of age (see SuperGuide article Employer super (SG) contributions paid for over-70s), the existing rules for voluntary superannuation contributions remain in place.
The existing rules, relating to upper age restrictions for super contributions, are:
- Voluntary concessional (before-tax) contributions can be made until the fund member turns 75. An individual aged 65 years or over, who is planning to make super contributions, must satisfy the over-65s work test (work 40 hours in a 30-day period in the financial year he or she is planning to contribute).
- Non-concessional (after-tax) contributions can be made until the fund member turns 75. Again, a work test must be met if aged 65 years or over.
Note: Strictly speaking, it is possible to make contributions beyond the age of 75, but the timeframe is very strict, and relates to the period before a person turns 75. A super contribution must be accepted (and recorded as a contributions) by a super fund no later than 28 days after the month that the fund member turns 75. For example, if Gerard turns 75 in May, then his super contribution must be registered by his super fund by 28 June. Note that the 28-day limit relates to when it is recorded as received by the fund, not when paid by the fund member.
Reminder: Anyone aged 65 years or over must satisfy a work test to be eligible to make a voluntary super contribution (for information on the contributions over-65 work test, see SuperGuide article Over-65s work test: How does it operate?).
Super alert! Downsizing and super: Since 1 July 2018, the federal government allows older Australians (65 and over) to contribute part or all of the proceeds of their home (up to a limit of $300,000 per individual), without the need to satisfy a work test, and even when an individual is aged 75 years or over. For more information, see SuperGuide articles Contributing super by downsizing your home: 10-point guide and Over 65? Sell your home and contribute more to super.
I explain the contributions rules for over-65s, the over-65s work test, and the SG contributions rules for over-70s, in the following SuperGuide articles: