Getting money into super
5.3 Definition of work test
The work test requires a member to be gainfully employed in order to make non-concessional contributions (NCCs).
From the 2022-23 financial year, the work test is abolished from members up to age 74 years. The work test still applies for personal deductible contributions made by people between 67-74).
To satisfy the work test* a member must work for at least 40 hours during a consecutive 30-day period in the financial year in which the contributions are made.
Table 1: Work test by financial year and age
|Year||Age||Work test and work test exemption conditions|
|2022-23||To age 74||Work test no longer applies for members making NCCs from the 2022/23 financial year (excludes personal deductible contributions made by people between 67-74).|
|2021-21||67 to 74 years old||A member needed to meet the work test or satisfy the work test exemption criteria|
|2020-21||Under 67 years old||Not applicable|
|2019-20||65 to 74 years old||A member needed to meet the work test or satisfy the work test exemption criteria|
|2019-20||Under 65 years old||Not applicable|
*Definition of gainfully employed - employed or self-employed for reward in any business, trade, profession, vocation, occupation or employment. The member is remunerated in return for the personal service provided either as salary, business income, bonuses and commissions that are documented and declared for tax purposes.
Note: this does not include passive investment income such as rental income or dividend income. Furthermore, members who volunteer their services are generally not considered to be gainfully employed as they do not receive remuneration for their services.
^The Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 passed on 10 February 2022, which removed the work test for those ages 65 to 74, allowing them to make non-concessional contributions.
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Last modified: Tuesday, February 22, 2022