APRA clarifies work test rules for JobKeeper payments
The prudential regulator has provided guidance on whether individuals aged 67 to 74 who have been stood down from their employment but are receiving JobKeeper are able to make personal contributions.
In an update to its FAQ page for COVID-19, APRA has clarified that where an individual aged 67 to 74 is stood down from their employment due to the impacts of the COVID-19 pandemic but is in receipt of the JobKeeper payment, the RSE licensee will be able to accept a personal contribution from that individual under the work test rules.
APRA stated that where an employer is receiving the JobKeeper wage subsidy for an individual, RSE licensees should consider the individual to be “gainfully employed” for the purpose of the “work test”, even if that individual has been fully stood down and is not actually performing work.
“In APRA’s view, it is appropriate for an RSE licensee to take this approach because the individual is still employed and is obtaining a valuable benefit from his [or] her employer,” the prudential regulator explained.
APRA stated that it may be difficult for RSE licensees to differentiate between an individual member who is working and a member who is not but who is nonetheless receiving the JobKeeper payment.
“As such, in APRA’s view, RSE licensees need not distinguish between individual members on JobKeeper who are working reduced hours or those who have been stood down, and can assume that all members in receipt of the JobKeeper subsidy satisfy the ‘work test’ for the purpose of voluntary superannuation contributions,” it stated.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
