Changes to the work test from 1 July 2022

People aged 67-74 no longer need to satisfy the work test or claim the work test exemption to make voluntary contributions to their super.

Work test from 1 July 2022

From 1 July 2022 members aged between 67-74 years old will no longer need to satisfy the work test to make or receive voluntary contributions to their account.

Satisfying the work test or work test exemption would only be required if you wished to claim a tax deduction on any personal contributions.

From 1 July 2022, if you submit the form to claim a tax deduction on any personal contributions and you’re required to satisfy the work test or the claiming of the work test exemption, we’ll contact you directly with instructions on how to make the relevant declaration.

Understanding the work test and work test exemption

To satisfy the work test a member would need to declare that they have worked at least 40 hours within 30 consecutive days in the current financial year.

Alternatively, a member aged 67-74 could claim the work test exemption if in the previous financial year they declare they met all of the following criteria:

met the work test,

had a total superannuation balance across all of their super accounts (including any accounts held outside of Mercer Super) less than $300,000 at the end of the previous financial year, and

have not previously claimed a work test exemption.

Members aged 75 years or older

From 1 July 2022 if you are 75 years old you have 28 days from the day you turn 75 to make the following voluntary contributions:

salary sacrifice

personal contributions

spouse contributions

any additional funds to your super account by your employer on your behalf such as administration fees or insurance premiums.

Once you are older than 75 years and 28 days, the contributions that can be made to your account are limited to compulsory employer contributions and downsizer contributions, irrespective of whether you satisfy the work test or work test exemption.

Contributing to your super

Contributing to your Mercer Super Trust account is easy – for personal contributions you can contribute these via BPAY ®, using the biller code ‘505966’ and your personalised reference number – this can be found in your online account, on the ‘Personal details’ page.

For spouse contributions please complete the “Your Spouse’s contributions to the Mercer Super Trust’ form available in the ‘Documents’ section of your online account, and for salary sacrifice contributions please speak to your employer.

Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited (‘Mercer Super’), ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981. Any advice contained in this content is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2022 Mercer LLC. All rights reserved.