The Work Test has been abolished for Members under 67 from 1 July 2022.
However, Members over 67 have to meet the work test in order to contribute to an SMSF if they want to make a personal concessional contributions. There is no work test requirement for non-concessional contributions. There is no age restriction for your SMSF accepting mandated employer contributions.
If you are 75 or older, your SMSF can only accept
- Mandatory super contributions made by your employer
- Downsizer contributions
The work test requires Members to be gainfully employed within the financial year.
Gainful Employment
Being gainfully employed means working for at least 40 hours during a consecutive 30-day period. This test has to be met each financial year in order to make contributions (both concessional and non-concessional) if Members are over 67. Unpaid work is not considered as being gainfully employed.
- Employer contributions, such as
- Voluntary contributions.
- Other amounts paid by your employer to your fund such as administration fees and insurance premium.
- Contributions made by you and any third party contributions, such as spouse contributions.
To see more info on Work Test Exemption on the ATO page, please click here.
Work Test Declaration
Members can use the work test templates below to inform an Accountant, Auditor or the ATO that the work test criteria was met:
Pensions
Once you are over 60 and retired, or 65 irrespective of your working conditions. you can commence a pension. For guidance on how to commence a pension, please view our pension page.
