Proposed changes to superannuation contribution rules
From July 1 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the Work Test.
Currently, they can only make voluntary contributions if they meet the Work Test, which requires that they work a minimum of 40 hours over a 30 day period.
This means that Australians aged 65 or 66 years who don’t meet the work test, because they may only work one day a week or volunteer, will now be able to make voluntary contributions to their superannuation.
This will align the Work Test with the eligibility age for the Age Pension, which is scheduled to reach 67 from 1 July 2023.
There are around 55,000 Australians aged 65 and 66 who will benefit from this reform in 2020-21.
In addition, the age limit for spouse contributions will increase from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.
There will also be extended access to the bring-forward arrangements, which currently allow those aged less than 65 years to make three years’ worth of non-concessional contributions, which are capped at $100,000 a year, to their super in a single year. This will now be extended to those aged 65 and 66.
If you require any further information, please contact Martin van der Saag of this office.
Martin van der Saag
Partner
T: 02 9984 7774
E: martinv@northadvisory.com.au
“Recent superannuation changes are designed to give Australians more choice and flexibility as they approach retirement.”
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Super Rules Are Becoming More Flexible
Changes are aimed at reflecting longer working lives and more varied retirement pathways.
Contribution Opportunities Are Expanding
Older Australians may now have greater ability to boost super balances closer to retirement.
Retirement Planning Can Be More Personalised
Greater flexibility allows retirement income strategies to be tailored to individual goals and timelines.
Driven by our values
Effortless and Seamless
On-Boarding Process
Intuitive and Knowledgeable
Direct Expert
Access
Useful and Articulate
Financial
Reporting
Forward
Thinking
Compliance Solutions
Streamlined
Tech
Integrated and Automated
Frequently Asked Questions
What changes were made to super to improve retirement flexibility?
The changes focus on making it easier for Australians to contribute to super later in life and manage retirement income more effectively.
Who benefits most from these superannuation changes?
Pre-retirees, older Australians still working, and individuals seeking more control over their retirement timing benefit the most.
Do these changes affect contribution rules?
Yes. Some changes relax age limits and work test requirements, allowing eligible individuals to make contributions for longer.
Do the changes impact retirement income strategies?
They can. Increased flexibility supports better use of transition-to-retirement strategies and retirement income planning.
Should I review my super strategy because of these changes?
Yes. Legislative updates often create new opportunities or risks that should be considered as part of a broader financial plan.
What’s changing with the Work Test, and why does it matter?
Currently, the Work Test requires working at least 40 hours in 30 days to make voluntary contributions. The change removes that requirement for people aged 65–66, which gives more flexibility for those working limited hours or volunteering.
North Advisory’s Reviews 
On 
Flo Mitchell
4 weeks ago
Changed to this company in 2019 from former accountant and love their approach of organizing everything for me face to face with Xero set up plus being able to call as much as I need for set annual fee. They also picked up on something that was not done correctly by my former accountant and saved me $4k for this.
Timothy Cummins
A month ago
They the truly the best, Martin and Judy are so experienced, knowledgeable & professonal, also quite like speaking with Rose : ) all people are so lovely!
Michael Iera
2 months ago
Positive, Responsiveness, Quality, Professionalism, Value
Michael Iera
2 months ago
Excellent company in regards to service and professionalism. Very experienced in dealing with complex matters. Highly recommended.
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia