Put more in your super for retirement
01 Jul 2024 5 min readAre you aged between 67 and 75 years of age and still working? Great news – you can invest more for retirement.
Since 1 July 2022, people between 67 and 75 years old have no longer needed to meet the work test to make most types of contributions to super. This means that if you’re in that age group, you now have greater flexibility to add more to your retirement savings.
What is the work test and how does its removal affect me?
Before 1 July 2022, Australians aged between 67 and 75 had to meet the work test to make personal contributions to their super. The work test required that you were gainfully employed for at least 40 hours over a 30 consecutive day period in the financial year contributions were made to super. So, if you were over 67 and had retired or reduced your work hours, you may not have been allowed to top up your super with personal contributions.
From 1 July 2022, the work test was removed for most types of super contributions. Now, anyone up to age 75 — regardless of their work status — can contribute extra money to super.
It’s important to note that the removal of the work test applies to personal after-tax contributions (including spouse contributions) only. If you make a personal contribution with the intention of claiming a tax deduction on it and are aged between 67 and 74, you’ll still need to meet the work test.
If you are 75 years or older, you can only claim a deduction for contributions made before the 28th day of the month following the month in which you turned 75.
The work test removal is a new opportunity for many to maximise their retirement savings.
Are there any other limits on my super contributions?
Despite the removal of the work test, limits or ‘caps’ still apply to your super contributions. These limits depend on the type of contribution you make.
| Contribution type | Annual limit |
|---|---|
| Before-tax (concessional) Includes: - employer contributions - salary sacrifice contributions - personal contributions you claim a tax deduction1. |
$30,000 per financial year. You can carry forward unused amounts of this cap on a 5-year rolling basis. Read our fact sheet Salary sacrifice and save to see how this works. |
| After-tax (non-concessional) Includes spouse contributions |
If your total super balance on 30 June 2023 is less than $1.9 million, then your limits are: - $120,000 per financial year or - up to $360,000 over a 3-year period using the bring-forward rule if you are age 74 or under on 1 July 2023 (noting that if you are aged 74 on1 July 2023, then your fund can accept personal contributions from you only if made no later than 28 days after the end of the month in which you turn age 75 (see below). |
1 The work test will still apply for personal contributions you claim a tax deduction on.
For more detail on contribution types and rules, see our fact sheet Opportunities and limits for super contributions.
Bring-forward rule extended to age 74
The bring-forward rule lets you add up to $360,000 (3 times the annual after-tax cap) to your super over a 3-year period. Before 1 July 2022, you needed to be under 67 to access the bring-forward rule. Now, the rule has been extended to age 74. This means that if you are age 74 on 1 July 2023, you can now take full advantage of the bring-forward rule. Note that an after-tax contribution can only be accepted by your super fund up to 28 days after the end of the month in which you turn 75. Your ability to use the bring-forward rule will also depend on your total super balance the previous 30 June — see the table below for the bring forward rules that apply if you trigger it for the first time in 2024-25.
| Total super balance at previous 30 June | Contribution and bring-forward amount available |
|---|---|
| Less than $1.66m | 3 years (3 x $120,000 = $360,000) |
| $1.66m to less than $1.78m | 2 years (2 x $120,000 = $240,000) |
| $1.78m to less than $1.9m | 1 year (1 x $120,000 = $120,000) |
| $1.9m or more | Nil |
How can I add money to my super?
If you’re under age 75 and you’d like to take advantage of the work test removal, you can add more to your super through:
Remember that limits apply to each contribution type, so make sure you check them first.
To make a contribution to your NGS account, simply choose the contribution method that best suits you:
- use your unique BPAY® reference number found on your Member Online account to contribute via your internet banking (you can find your BPAY® details in Member Online by clicking the ‘person’ icon at the top of the screen, then selecting 'Personal Details') or
- attach a cheque to a completed Lump sum contribution form or have your spouse attach a cheque to a completed Spouse contribution form.
If you have any questions about making contributions to super, our Super Specialists can help.
Note: You can only make contributions to an accumulation account, like the NGS Accumulation account. Contributions cannot be made to the NGS Income account.
What if I want to make a personal deductible contribution?
You’ll still need to meet the work test if:
- you’re between 67 and 74 years of age and
- you make a personal contribution and plan on claiming a tax deduction.
Downsizer contributions now available to 55-year-olds
From 1 January 2023, Australians can access the downsizer contribution scheme from age 55 instead of 60.
The downsizer scheme allows you to make a one-off contribution of up to $300,000 ($600,000 for a couple) to your super from the sale of your family home. Despite the name, you don’t actually need to downsize (or buy a new home at all). You can read our information sheet for full details on how the scheme works.
Need help?
If you’d like to talk through these changes and how they affect you, you can book a time to chat with one of our Super Specialists. Either book online or call us on 1300 133 177 to book an appointment.
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