You are 70 years old or older
Because you are 70 years old or older, you are generally unable to make super contributions. However, if you are employed and meet a work test, your fund can accept certain contributions.
The work test requires you to be gainfully employed. To satisfy the work test, you must work for at least 40 hours during a consecutive 30-day period each financial year. Unpaid work does not meet the definition of gainfully employed.
If you meet the work test and are between 70 and 75 years old, your fund can accept:
- mandatory super contributions made for you by your employer
- other types of employer contributions such as
- voluntary contributions your employer makes
- other amounts paid by your employer to your super fund such as administration fees and insurance premiums
- personal contributions made only by you.
If you meet the work test and are over 75 years old, your fund can only accept mandatory super contributions made for you by your employer.
From 1 July 2013, the government has announced that employees over 70 will be entitled to super guarantee payments from their employer.
Contributions
There are two types of super contributions:
Your contributions caps
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Concessional
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Non-concessional
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2012-13
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$25,000*
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$150,000
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2011-12
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$50,000*
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$150,000
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Tax on amounts over the cap
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31.5% (plus 15% paid on your behalf by your super fund)
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46.5%
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*There is 15% tax payable on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.
From 1 July 2012, if you have gone over your concessional (before-tax) contributions cap by $10,000 or less, you may receive a once-only offer to have the excess concessional (before-tax) contributions refunded to you and assessed at your marginal tax rate, rather than pay excess contributions tax.
From 1 July 2014, the concessional (before-tax) contributions cap will be indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $5,000.
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Any contributions over the concessional (before-tax) contributions cap will count towards your non-concessional (after-tax) contributions cap. If you have more than one super fund, contributions made to each fund will count toward your caps.
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Because you are over 65 years old, you can't access the bring-forward provision.
Sections within Your age and super contributions caps
Last Modified: Tuesday, 3 July 2012