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Deductible super contributions and work test for clients aged 67-75
Article published on: 09-06-2023
ATO guidance indicates there are no additional requirements in (or in addition to) the tax return, as a result of a work test declaration no longer needing to be provided to a super fund for personal contributions. It’s expected that based on existing ATO systems, reporting (such as Single Touch Payroll and BAS returns) and other data matching will enable the ATO to validate in most cases, whether the work test has been met and it will seek further information from the individual if necessary.
Since 1 July 2022, the work test only applies to clients aged 67 – 75* wishing to claim a tax deduction for personal contributions. Therefore, the work test is one of the eligibility rules relating to the tax deductibility of personal contributions, rather than an eligibility requirement for the super fund to accept the contribution. The process for claiming a deduction for a personal contribution is unchanged.
This means a client:
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makes a personal contribution to superannuation
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submits a notice of intent to the super fund, and
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claims the deduction in their tax return.
As the work test relates to eligibility to claim a tax deduction, the ATO will make the assessment whether an individual aged 67 – 75* has met the work test based on data-matching capabilities, as well as other requirements.
* Contributions must be made no later than 28 days after the end of the month in which the person turns 75.
More information
The ATO has published a useful table which outlines the requirements when claiming a deduction for a personal contribution, specifically the steps that have remained the same, and where requirements differ. For more information about the steps to claiming a tax deduction, please see the below resources: |
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