Super News! Video Series 1 of 5 – Partially Removing the Work Test for those aged 67 to 75

The existing superannuation work test (broadly a minimum of 40 hours of gainful employment within a period of 30 days) or the ‘work test exemption for recent retirees’ will no longer be required from 1 July 2022 for individuals aged 67 to 75 who make/receive salary sacrifice or non-concessional contributions (NCCs).

The work test or recent retiree exemption will still be required for individuals in that age range who wish to claim a tax deduction for their personal contributions. Under the new rules, the work test can be met in any period in the financial year of the contribution. This is different to the current rules, where the work test must be met prior to contributing.

If the client has made a contribution and has not met the work test, they will be ineligible to claim a tax deduction for the contribution. The contribution will be classified as NCC and will count towards the client’s NCCs cap.

Watch my video for a deeper explanation and how this could benefit you.

Direct Link: https://youtu.be/npO2C4uw_94

 

Stay Safe & Happy Investing,

Aaron Kane

Managing Director

EK Financial Group

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