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  • Repealing the work test for voluntary super contributions

    How the work test change affects those who want to make or receive personal and salary sacrificed super contributions.

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    What this change means

    If you are under 75 years old you can make or receive personal super contributions and salary sacrificed contributions (within your existing contribution cap limits) without meeting the work test. You may also be able use the bring forward rule.

    Note: you may still need to meet the work test to claim a personal super contribution deduction.

    How removing the work test affects you

    Before 1 July 2022, if you were 67 to 74 years old you could only make or receive voluntary contributions (both concessional and non-concessional) to your super if you met the work test. That is, you must work at least 40 hours over a 30-day period in the relevant financial year.

    From 1 July 2022 this requirement was removed except for individuals wishing to claim a personal super contribution deduction.

    The table below shows how this change may impact you.

    How removing the work test affects you if you are between 67 and 74 years old

    Action

    Before 1 July 2022

    From 1 July 2022

    You need to meet the work test to make or receive a personal super contribution

    Yes

    No

    You can access the bring forward non-concessional contributions rule

    No

    Yes

    You must meet the work test to claim a personal super contribution deduction.

    Yes

    Yes

    You must lodge a Notice of Intent to claim or vary a deduction for personal contributions form with your super fund when you intend to claim a deduction

    Yes

    Yes

    You must receive an Acknowledgement from the Fund for the Notice of Intent to claim or vary a deduction for personal contributions.

    Yes

    Yes

    You claim the personal super contribution deduction in your tax return at Personal super contributions in:

    • myTax or
    • the Individual tax return supplement.

    Yes

    Yes

    You can lodge a Notice of Intent to claim or vary a deduction for personal contributions form.

    It is important to note that time limits apply and you must give your fund a notice (or variation) by whichever of the following dates occurs first

    • the day you lodge your income tax return for the income year in which the contribution was made
    • the end of the income year following the income year in which the contribution was made.

    Note that the above deadlines do not apply if we have disallowed your deduction and a variation is being made to reduce the amount claimed by the amount not allowable.

    Yes

    Yes

    A variation is not effective if:

    • you are no longer a member of the fund
    • the fund no longer holds the contribution
    • the fund has begun paying an income stream based in whole or part on the contribution
    • you do not meet the time limits

    Note if your variation is not valid the contributions tax cannot be adjusted.

    No change

    No change

    How removing the work test affects super funds

    Fund Trustees no longer have to apply the work test at the time they accept the contribution from their members. This includes when the member provides a Notice of intent to claim or vary a personal super contribution deduction.

    For individuals 67 to 74 years old wishing to claim a personal super deduction for their contribution we will be administering the work test at the time they lodge their income tax return.

    For individuals 67 to 74 years old there is no change to the way they lodge their notice of intent to claim or vary a personal super contribution deduction or lodge their income tax return.

    How removing the work test affects super funds

    Action

    Before 1 July 2022

    From 1 July 2022

    Funds must check the member satisfies the work test to accept a personal contribution.

    Yes

    No

    Funds must:

    • receive a Notice of Intent to claim or vary a deduction for personal contributions form from a member wishing to claim a personal super contribution deduction
    • acknowledge receipt of this Notice if the member is eligible

    Yes

    Yes

    Funds must check the member satisfies the work test to accept a Notice of Intent to claim a personal super contribution deduction.

    Yes

    No

    Funds must be given a notice (or variation) by a member by whichever of the following dates occurs first:

    • the day they lodge their income tax return for the income year in which the contribution was made
    • the end of the income year following the income year in which the contribution was made.

    Note that the above deadline does not apply if we have disallowed a member's deduction and a variation is being made to reduce the amount claimed by the amount not allowable.

    Yes

    Yes

    The variation must be valid and in the approved form.

    Yes

    Yes

    The declarations included in the Notice of Intent to claim or vary a deduction for personal contributions form must be completed by the member.

    Yes

    Yes

    Last modified: 01 Jul 2022QC 68218