What is the work test exemption?

If you are under 75 years old, you will no longer need to meet the work test to make or receive non-concessional super contributions and salary sacrifice contributions.

However, if you are between 67 to 74 years old, you will be required to meet the work test in order to claim a personal superannuation contribution deduction.

If you cannot meet the work test, you may still be able to claim a tax deduction for personal superannuation contributions where all of the following requirements are satisfied:

• You met the work test (see below) in the financial year immediately prior to the year of the contributions, and • You had a total super balance of less than $300,000 at the end of the previous financial year, and • You have not previously used the work test exemption in a previous financial year to make a contribution to a super fund.

To meet the work test under the work test exemption rule, you must have been gainfully employed for at least 40 hours during a consecutive 30-day period in the financial year immediately prior to the year in which the contributions are made.

You should consider speaking with a professional financial advisor before making any financial decisions.