What happens to super contributions when you’re over 65?

John Wasiliev

If you’re over 65 when you make the contribution, you will need to satisfy the so-called work test. Photo: Louie Douvis

Reader’s question: Is it true the rule that allows you to make three years of non-concessional super contributions in a single year does not apply after you’re 65?

Does whether you are working or not make any difference?

Is there any possibility the government may extend the age limit to 75, given you can make concessional contributions to 75 if you are working?

You can actually be over 65 and still access the so-called bring-forward rule so long as you were under 65 at the commencement of the financial year in which the contribution is made, says Peter Burgess, technical director with the Self-managed Super Fund Professionals Association of Australia.

In other words, the $450,000 non-concessional contribution can be made in a financial year even if you are over 65 when the contribution is actually made (you just need to be under 65 years at some point during the financial year).

Work test

If you are over 65 when you make the contribution, you will need to satisfy the so-called work test before the fund is able to accept your contribution.

This test requires that you work for at least 40 hours in a period of no more than 30 consecutive days in the financial year in which the contribution is made.

Something to hope for

Extending the bring-forward rule to age 75, says Burgess, makes a lot of sense. Aligning it with the age limit which applies to non-concessional contributions would simplify the contributions caps for individuals over age 65 and reduce instances of inadvertent contribution cap breaches.

However, despite these obvious benefits there has been no indication from the government that this is being considered.

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