Voluntary Contributions for 67 to 75
From July 1, individuals aged between 67 and 75 will be able to contribute without having to meet the work test, but they need to watch out for contribution caps and tax deductions.
From 1 July 2022, individuals aged between 67 and 75 will no longer need to satisfy a work test to make voluntary super contributions.
This reform acknowledges that many people retiring today have been receiving compulsory superannuation only since 1992. This initiative will allow them to continue making voluntary contributions long after they have retired.
First, the definition of a “voluntary contribution” is not limited to salary-sacrifice. It can also include small business capital gains tax (CGT) contributions and personal injury contributions, with the former particularly relevant to business owners.
Second, this change has implications for contribution caps. In all the fuss about removing the work test, it is important to remember not to exceed the contribution caps. Otherwise, you may be liable for additional tax on the excess contributions.
These caps continue to apply regardless of your age or employment status. It is also worth noting that if your total superannuation balance is greater than or equal to $1.7 million at June 30, 2022, your non-concessional contributions cap for 2022-23 is zero. That means that if you make any non-concessional contributions in 2022-23, they will be treated as excess non-concessional contributions.
Please don’t hesitate to contact us on info@suezaccounting.com.au if you would like to know more …
