The work-test provisions stipulate an individual’s eligibility to make personal contributions if they are aged between 65 and 75, and working.
At the time an individual is contributing, they must have been gainfully employed during the financial year for at least 40 hours, over a period of no more than 30 consecutive days.
The 30 days can be any 30 consecutive days within the financial year; they do not have to be in one particular month.
To be gainfully employed means that the individual is employed or self-employed for gain or reward in any business trade, profession, vocation, calling, occupation or employment.
The work test only stipulates the minimum requirements; there are no upper limits to how often an individual can work. The government co-contribution scheme and the spouse contribution scheme are also subject to this work test.
From age 65 and onwards, if an individual is employed but does not meet the work test their employer is still able to make compulsory contributions on their behalf, however, the individual is unable to make personal contributions.
According to The Australian Prudential Regulation Authority, an individual cannot take prospective employment into account.
To satisfy the work test, the individual must have worked at least 40 hours in the financial year before the trustee can accept contributions.
However, when it comes to the spouse contributions there are age restrictions. The recipient spouse can be no older that 70 years and if between 65 and 70, they must have worked 40 hours within 30 consecutive days to be eligible.
