Recent changes to legislation will give greater flexibility to those aged 65 and over to make voluntary superannuation contributions.
For those under 67 years of age, the reforms will enable you to:
- Make voluntary superannuation contributions (concessional and non-concessional) without meeting the Work Test. Currently, voluntary contributions can only be made if the individual has worked a minimum of 40 hours over a 30 day period (Work Test).
- Use the ‘bring forward rule’ to make up to three years of non-concessional contributions. That is, you can make non-concessional contributions of up to $300,000 from the 2020-21 financial year. (NB The bring-forward rule is still to be mandated – we expect that this will be passed prior to 1 July)
In addition, the cut off age for making voluntary contributions for your spouse will increase from 70 to 75 years of age.