What are the New Age limits & Work Test Restrictions for Superannuation Contributions from July 2013?

This is crucial for employers, self-employed and anyone considering working past age 65. It is important to understand that it is your age on the date of the contribution that counts. Employees currently do not receive the 9% SG contribution after the age of 70 but that will change on July 1st 2013 so here is an update.

Member’s age at date of contribution Can my SMSF or Superannuation fund accept this contribution?
Under 65 No age limit or work restriction applies
65 but under 75 Mandated Employer Contributions – for example including superannuation guarantee contributions (SGC , usually 9%),                                      orMust have been gainfully employed on at least a part-time basis for at least 40 hours in any one day period during the financial year in which the contributions are made.
75 + Mandated Employer Contributions – including super guarantee contributions (SGC). You cannot make personal voluntary concessional or non-concessional contributions regardless of meeting the work test or not.

There is a slight leeway for people to make contributions shortly after their 75th birthday in that the rules allow for a contribution during the period 28 days after the end of the month in which the member turns 75.

Also A regulated superannuation fund may accept contributions in respect of a member if the trustee is reasonably satisfied that a contribution is in respect of a period during which the fund may accept the contribution in respect of that member, even though the contribution is actually made after that period. So if your employer forgot to make a payment and does a catch-up contribution after you have passed an age limit.


If a SMSF or other regulated superannuation fund receives a contribution for a member who does not meet the relevant age and work test it must reject it or return it to the entity making the contribution within 30 days of becoming aware of the breach.

For SMSF trustees the ATO appears to have a more stringent view that the deadline is 30 days from the date of the excess contribution not 30 days from when they become aware of the breach. That is an “ATO view” so not written in to the regulations and subject to challenge.

Tax File Number

The regulated superannuation fund must not accept any member contributions if the member’s tax file number has not been quoted (for superannuation purposes) to the trustee of the fund.

For more information on the existing rules refer to REG 7.04 of the SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 and for the changes http://www.moresuper.gov.au/content/Content.aspx?doc=faqs.htm

One final note – Increase to SG Contributions

Employers need to ensure they implement the new Superannuation Guarantee (SG) changes which take effect on 1 July 2013. Specifically, the SG rate will increase from 9.0% to 9.25% from that date. Further increases will apply in subsequent years until the rate reaches 12% in 2019/20

For employers; to assess if you need to pay Superannuation guarantee payments for a particular person you can use the ATO’s SG Eligibility Decision Tool

As always please contact me if you want to look at your own particular situation . We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

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Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

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