Is the work test abolished?

The only change is that now we will be checking to see if they meet the work test at the time, they lodge their income tax return. From 1 July 2022, members under 75 years of age will no longer have to meet the work test to make superannuation contributions.

What is the work test exemption for super contributions?

From 1 July 2019, if you no longer meet the work test your super fund can still accept voluntary contributions for an extra 12 months from the end of the financial year in which you last met the work test, provided you meet certain criteria. This is called the work test exemption.

What is the work test declaration?

Declaration. Declaration If you are aged 67 or over but under age 751, please declare if you satisfy the ‘work test’, the ‘work test exemption’ or you do not satisfy the ‘work test’ for the financial year 2021 to 2022. Select only one of the following (tick one box) I HAVE SATISFIED the definition of gainful employment …

What are the rules for superannuation?

Generally, your employer must pay super for you if you are:

  • 18 years old or over, and are paid $450 or more (before tax) in a calendar month.
  • under 18 years old, being paid $450 or more (before tax) in a calendar month and work more than 30 hours in a week.

Does the work test still apply for super contributions?

Need to know: In the May 2021 Federal Budget, the government announced it planned to repeal the current work test for making super contributions for people aged between 67 and 74. Legislation has now passed both houses of parliament and will apply from 1 July 2022.

How many hours do you need to work to contribute to super?

The work test requires you to be in paid work (that is employed, or self-employed for gain or reward) for a minimum of 40 hours over a consecutive 30-day period during a financial year, before you’re able to make voluntary super contributions.

Why would a member need to complete a work test?

In 2018-19, individuals aged 65 or over (but under the age of 75) are required to satisfy a ‘work test’ in order to make voluntary contributions to superannuation (unless the contribution is a downsizer contribution from the sale proceeds of an individual’s main residence).

What happens if I exceed the superannuation cap?

If you have more than one super fund, all your contributions are added up and count towards your caps. If you exceed these caps, you may need to pay extra tax. You can avoid this by knowing about your own contribution caps.

Do casual workers get super?

Generally, all employees are eligible for super. It doesn’t matter if the employee is: full-time, part-time or casual.

When must an employee pay super?

Super has to be paid at least every 3 months and into the employee’s nominated account. The ATO can give advice and assistance on superannuation issues, including on the super guarantee.

When did the work test change?

Work test changed for voluntary super contributions to help older Australians save. From 1 July 2022, people aged 67 to 74 will no longer be required to meet the work test when making or receiving non-concessional or salary sacrificed superannuation contributions.

Do casual employees get paid superannuation?

Superannuation must also be paid for any casual employee who is under 18 years of age, works at least 30 hours per week, earns at least $450 per month (before tax) and is not otherwise exempted. This means that employers must pay super for every week that an under-18 casual works 30 hours or more.

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