Making Superannuation Contributions over the age of 65
Anthony Poole
|August 5, 2020
|Recent changes to superannuation legislation now makes it easier for people over the age of 65 to make contributions to superannuation.
From 1st July 2020, you no longer need to meet the work test or work test exemption criteria if you are 65 or 66 years old in order to contribute money into superannuation. This means that members can top up their superannuation balances even if they are retired.
Contribution limits usually depend on your age and Total Superannuation Balance (TSB) at 30th June the previous financial year.
Here is a summary of options that may be available to you:
| Age | TSB @ 30th June | Concessional Contribution Limit | Non-Concessional Contribution Limit | Carry Forward Concessional Contributions Eligible |
| 65 or 66 | <$500,000.00 | *$25,000.00 | $100,000.00 | Yes |
| $500k – $1.6M | $25,000.00 | $100,000.00 | No | |
| >$1,600,000.00 | $25,000.00 | Nil | No | |
| 67 + | <$500,000.00 | *●$25,000.00 | ●$100,000.00 | Yes |
| $500k – $1.6M | ●$25,000.00 | ●$100,000.00 | No | |
| >$1,600,000.00 | ●$25,000.00 | Nil | No |
*From 1st July 2018, if your Total Superannuation Balance (TSB) is less than $500,000.00 at 30th June the previous financial year, you can carry forward any of your unused contributions cap by the amount of the unused cap up to a maximum period of 5 years.
- Once you turn 67, you must meet the work test or work test exemption criteria to contribute money into superannuation.
While discussions are currently taking place to increase the Brought Forward Rule age limit to keep in line with the new work test age limit, these changes have not yet been legislated, so the brought forward rule can still only be triggered before your 65th birthday.
You can still make non-concessional contributions if you are 67–74 years old and meet the work test or satisfy the work test exemption criteria.
From 1st July 2019 your super fund can also accept voluntary (non-concessional) contributions for an additional 12-month period from the end of the financial year in which you last me the work test, providing that you are aged 65-74 with a total super balance of less than $300,000.00 and have not relied on the work test exemption in a previous financial year.
From 1st July 2018 if you are 65 years or older and meet the eligibility requirements, you may also be able to choose to make a downsizer contribution into your superannuation of up to $300,000.00 from the proceeds of selling your home.
Contributing money into the low tax environment of superannuation can be beneficial, but the rules surrounding eligibility and contribution caps is complicated and changing, so before contributing money into superannuation, you should contact your accountant to confirm which contributions limits apply to your personal circumstances.
