In your 70s? The super rules that apply to you

There are lots of rules when it comes to our super system. But not every rule applies to you at every age, so it’s worth figuring out which ones have an impact on your age group.

The rules at different ages govern how much and when you can contribute to super, when you can get your hands on your savings, and how much tax you will pay. These are designed to ensure super is used for its intended purpose – for retirement income – in exchange for the generous tax benefits offered as part of Australia’s super system.

To make things a bit easier to understand, here’s SuperGuide’s simple explainer of the super rules applying in your golden years.

Super rules if you’re aged 70 plus

Once you turn 70, you are nearly at the end of your eligibility to make contributions into your super account.

Between age 70 and 74, you’re still free to make most types of contributions (salary sacrifice, non-concessional and downsizer) into your super account without needing to meet the requirements of a work test.

Unfortunately, if you want to make personal tax-deductible contributions you do need to meet the work test.

Once you reach age 75, the only contributions still permitted to be made into your super account are employer SG, mandated non-SG and downsizer contributions. (There is a little wiggle room in the rules, however, as you can still make voluntary contributions up to 28 days after the end of the month in which you turn 75.)

1. Contributing to super

Superannuation Guarantee (SG)

If you’re aged over 70, your employer must still pay SG contributions on your behalf into your super account. The SG contribution rate is currently 12% of your eligible earnings.

If you meet the eligibility conditions, SG contributions are payable regardless of your age or whether you are classed as working full time, part time or as a casual, or if you are a temporary resident.

If you are a contractor paid ‘wholly or principally for labour’, you may be considered an employee for super purposes and entitled to SG payments.

Your employer is not required to make SG contributions on your behalf if you don’t meet the SG eligibility conditions, such as if you are a domestic worker like a nanny or housekeeper and work less than 30 hours a week.

Super fund stapling

When you start a new job you must inform your employer about the super fund you would like them to make regular SG contributions into on your behalf.

If you don’t advise your employer of your choice of super fund, they must check with the ATO to see if you have any existing super fund accounts into which they can make their SG contributions. This existing super fund account is called your stapled account, as it is linked to you and follows you as you change jobs.

Stapling is designed to stop new super accounts being opened every time you change employer, so you don’t end up paying multiple account fees. You are free to change your stapled account at any time by providing your employer with the details of your new super fund.

Contributions caps