In a release issued this afternoon, Treasurer Josh Frydenberg has announced a new measure which will enable Australians approaching their retirement years to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the work test.
Currently, they can only make voluntary contributions if they meet the work test, which requires that they work a minimum of 40 hours over a 30-day period.
This means that Australians aged 65 or 66 years who don’t meet the work test, because they may only work one day a week or volunteer, will now be able to make voluntary contributions to their superannuation, said Mr Frydenberg.
“This will align the work test with the eligibility age for the age pension, which is scheduled to reach 67 from 1 July 2023.”
Mr Frydenberg said there are around 55,000 Australians aged 65 and 66 who will benefit from this reform in 2020-21.
The Morrison government has also announced it will increase the age limit for spouse contributions from 69 to 74 years.
Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.
“We will also extend access to the bring-forward arrangements, which currently allow those aged less than 65 years to make three years’ worth of non-concessional contributions, which are capped at $100,000 a year, to their super in a single year. This will now be extended to those aged 65 and 66,” said Mr Frydenberg.
DOES THIS MEAN A MEMBER WITH FUNDS IN EXCESS OF $1.6M IN PENSION MODE MAY BE ABLE TO “TRANSFER” ACCUMULATION FUNDS TO THEIR PARTNER (UNTIL 74 ) AS A PENSION?
This is so marginal given that the proposed work test abolition for those under age 75 was abolished by the Prime Minister. Surely having a work test for those over age 65 is age discriminatory?
Yah some commonsense finally !!!
They could have done this when they stuffed around with superannuation in recent budgets, but no, they pluck at straws willy-nllly, proving what most financial professionals already know, that they just don’t get it.
Inadequate.
Spectacular common sense
Problem will be explaining it to Chris and Bill and getting it through the Senate