Individuals do not need to meet a superannuation contribution work test if they were under age 65, until the 2019/20, under 68 from 2020/21 and under 75 from 21/22. From 21/22 members do not need to meet the work test to make a contribution. They do need to meet the work test, at any time during the year, if they wish to take a personal tax deduction for that contribution. Eligible members are allowed a work test exemption for contributions made after the year in which they last met the work test. Therefore, tax deductions on contributions will be allowed in the year even though the individual has not worked in that financial year provided that the following eligibility requirements have been met:

• The member is aged between 65/67 and 74.
• The member has satisfied the work test in the financial year prior to the financial year in which contributions are made.
• The member had a total superannuation balance (TSB) of less than $300,000 at the end of the previous financial year.
• The member has not made prior contributions under the WTE in a previous financial year – it’s a one off exemption.

Example

Kelly is 68 years of age with a total superannuation balance of $212,000 at 30 June 2022. She was gainfully employed and met the work test during the 2021-22 financial year as an Uber driver. She has decided to stop driving in the 2022-23 financial year. Typically, Kelly would not be able to make any contributions due to her age from July 2022 onwards. Applying the WTE provides her access to ‘voluntary’ contributions for the entire 2022-23 financial year. Kelly makes a $110,000 non-concessional contribution and a $27,500 personal deductible member contribution.