As announced in 2019/20 budget, the Government has released draft legislation and draft regulations to extend the work test start date to age 67 and to allow the use of bring forward contributions for persons aged 65 and 66.

The new laws (if passed) are to take effect from 1 July 2020. They will mean that members aged 65 and 66 will no longer have to meet the work test to make contributions. The work test (employment of at least 40 hours in any 30 day period in a financial year) will continue to apply for members aged from 67 to 74. The existing (limited) ability to make contributions for one year after ceasing employment will continue to apply for members aged 67 to 74.

The new laws will also permit eligible members to access the bring forward rule that will allow them, under the current non-concessional contribution caps, to make up to $300,000 worth of non-concessional contributions at any time in a 3 year period.

To discuss further or for more information please contact:

Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E: pbroderick@sladen.com.au

Melissa Colaluca
Senior Associate
T +61 3 9611 0161
E: mcolaluca@sladen.com.au