Under the draft bill, the Superannuation Industry (Supervision) Regulations 1994 would be amended to allow people aged 65 and 66 to make voluntary contributions without meeting the work test, as well as allow people aged 70 to 74 to receive spouse contributions by increasing the maximum age from 69 to 74 years.
Further, the draft bill would amend the Income Tax Assessment Act 1997 to extend access to the bring‑forward arrangements to people aged 65 and 66.
In response, SMSF Association chief executive John Maroney welcomed the work test changes, saying they recognise the need for Australians to have greater flexibility as they transition to retirement.
“Work patterns are constantly changing, so it’s essential the legislation underpinning superannuation changes, too, to help ensure Australians can accumulate sufficient savings to have a secure and dignified retirement,” Mr Maroney said.
“It has long been the association’s policy position to support greater flexibility for making contributions to superannuation. Although our preference is to remove the work test altogether, this measure is a step in the right direction, and the government is to be commended for implementing this election promise.”
The bill is under an ongoing consultation which will close on 3 April 2020. Following consultation, the changes are expected to take effect from 1 July 2020.
Could not agree more!
I believe the work test should be abolished altogether. Especially up to age 75. Perhaps the test for contributing over age 75 should be linked to the $1.6M balance. With people living and working for longer, this test is ridiculous.
Why not get rid of work test altogether ?
It used to be 10 hrs, then 40 hrs and on the legislative table for years to get rid of it. Why make it harder to save and contribute to one’s self funded retirement?
It makes zero policy sense, mind you not much Pollies do makes any sense.