Australia’s superannuation system has undergone extensive reforms in recent years, with certain requirements needing to be met before a superannuation fund can accept contributions on behalf of a member.
Superannuation Industry (Supervision) Regulation 7.04(1) outlines the conditions below.
|
Age |
Conditions where a fund may accept contributions |
|---|---|
|
Under 65 |
A fund can receive contributions on behalf of the member regardless of the work test. |
|
Over 65 |
Mandated employer contributions and downsizer contributions may be received regardless of the work test. For a fund to receive member contributions or employer contributions (except mandated) the member must be gainfully employed on at least a part time basis during the year in which the contribution is made. If the member is not gainfully employed on at least a part time basis during the year, but they were gainfully employed on at least a part time basis in the financial year immediately preceding the current one, and their total super balance was below $300,000 as at the most recent 30 June, they can utilise what’s known as the Work Test Exemption, so long as this exemption has not been used in a previous financial year, the fund may receive member contributions or employer contributions. |
|
Over 70 |
Mandated employer contributions and downsizer contributions may be received regardless of the work test. For a fund to receive member contributions made by the member or employer contributions (except mandated) the member must be gainfully employed on at least a part time basis during the year which the contribution is made. The contribution must be received on or before the day that is 28 days after the end of the month in which the member turns 75. The Work Test Exemption can also be utilised, as per above and the contributions are made by the member |
|
75 and over |
Mandated employer contributions and downsizer contributions may be received regardless of the work test. No other contributions will be accepted. |
Superannuation Industry (Supervision) Regulation 7.01(3) defines gainful employment on a part time basis as performing at least 40 hours in a period of not more than 30 consecutive days within that financial year.
Other requirements
In addition to a member meeting the requirements outlined in SIS Regulation 7.04(1), there are additional requirements that must be met for a fund to accept a contribution on behalf of a member.
These include:
-
A superannuation fund is prohibited from accepting a member contribution if the member’s tax file number has not been quoted.
-
From 1 July 2017, there are restrictions on the ability to make non-concessional contributions for individuals with total superannuation balances of $1.6 million or greater, as at 30 June in the preceding financial year.
Concessional contribution rules
Non-concessional contribution rules
Comparison: Transfer balance cap versus total super balance
Removal of 10% test to make personal deductible contributions
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