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  • Age restrictions on contributions

    There is no age restriction on your SMSF accepting mandated employer contributions. However, there are criteria which need to be met for other contributions.

    For the 2004-05 to 2019-20 financial years, a member who is over 65 years old but not 75 years old must have worked at least 40 hours within 30 consecutive days in that financial year before your SMSF can accept certain contributions for your members. For the 2020–21 financial year onwards, this applies to members over 67 years old but not 75 years old. This is known as the work test.

    You need to be sure the following contributions can be accepted if your member is at or above the relevant age threshold for:

    • non-mandated employer contributions
    • personal contributions
    • spouse contributions
    • government co-contributions
    • downsizer contributions.

    From the 2019–20 financial year onwards, your SMSF can also accept voluntary contributions for an additional 12-month period from the end of the financial year in which your member last met the work test, provided your member meets the following criteria. This is known as the work test exemption. Your member cannot have relied on the exemption in a previous financial year.

    Table 1: Eligibility criteria for the work test exemption

    Year

    Age

    Total super balance

    2019–20

    65-74

    Less than $300,000

    2020–21 onwards

    67-74

    Less than $300,000

    The table below looks at age restrictions in more detail.

    For your SMSF to accept a downsizer contribution the member must be 65 years old or over, there is no maximum age limit and no requirement to meet the work test.

    Table 2: Age restrictions on accepting contributions

    Age

    Year

    Member meets the work test (or work test exemption)

    Member does not meet the work test (or satisfy the work test exemption criteria)

    Under 65 years old

    2004–05 onwards

    All contributions can be accepted, except downsizer contributions.

    All contributions can be accepted, except downsizer contributions.

    65 to 66 years old

    2004–05 to 2019–20

    All contributions can be accepted

    You can only accept:

    • mandated employer contributions
    • downsizer contributions
     

    65 to 66 years old

    2020–21 onwards

    All contributions can be accepted

    You can only accept:

    • mandated employer contributions
    • downsizer contributions
    • voluntary contributions
     

    67 to 69 years old

    2004–05 onwards

    All contributions can be accepted

    You can only accept:

    • mandated employer contributions
    • downsizer contributions
     

    70 to 74 years old

    2004–05 to 2019–20

    You can only accept:

    • mandated employer contributions
    • downsizer contributions
    • personal contributions and other non-mandated contributions received, on or before 28 days after the end of the month in which the member turns 75 years old.  
     

    You can only accept:

    • mandated employer contributions
    • downsizer contributions.
     

    70 to 74 years old

    2020–21 onwards

    You can only accept:

    • mandated employer contributions
    • downsizer contributions
    • personal contributions and other non-mandated contributions received, on or before 28 days after the end of the month in which the member turns 75 years old.
    • spouse contributions
     

    You can only accept:

    • mandated employer contributions
    • downsizer contributions.
     

    75 years old or older

    2004–05 onwards

    You can only accept:

    • mandated employer contributions
    • downsizer contributions.
     

    You can only accept:

    • mandated employer contributions
    • downsizer contributions.
     

    For members who are 75 years old or older, if the contribution is made more than 28 days after the end of the month in which the member turned 75 years old, the only acceptable contributions are mandated employer contributions and downsizer contributions.

    TFN restrictions on contributions

    Every member of the fund needs to supply their tax file number (TFN) for super purposes.

    If your member has not given you their TFN, you can only accept employer contributions. All other contributions must be returned to the contributor within 30 days unless the member gives you their TFN within that period.

    If any of your members haven't supplied their TFN, their contributions will be taxed at a higher rate – see Assessable contributions.

    You must ensure that you correctly report member TFNs to us every year, or we may:

    • make you return contributions for the member
    • tax their contributions at a higher rate.
      Last modified: 16 Jul 2020QC 21807