The Government has released draft legislation to give eligible older Australians additional flexibility to contribute more into superannuation as they move into retirement.
Currently people aged 65-74 must work a minimum of 40 hours in any 30-day period in the financial year in order to keep making contributions to superannuation – this is known as the work test.
Under the Government’s draft legislation, Australians aged 65 to 74 with a total superannuation balance below $300,000 will be able to make voluntary contributions for 12 months from the end of the financial year in which they last met the work test.
“This legislation will give eligible older Australians an extra year to boost their superannuation, so they can better prepare for retirement,” Assistant Treasurer Stuart Robert said.
Individuals will also be able to access unused concessional cap space to contribute more than $25,000 under existing concessional cap carry forward rules during the 12 months.
Existing annual concessional and non-concessional caps ($25,000 and $100,000 respectively) will continue to apply to contributions made under the work test exemption.
This measure was announced in the 2018-19 Budget as part of the More Choices for a Longer Life package.