From 1 July 2019, SMSF members aged 65 to 74 with total superannuation balances below $300,000 can make voluntary contributions to their SMSFs in the first year after they stop working. This means that SMSF members would be able to make voluntary contributions for 12 months from the end of the financial year in which they last met the work test.
The annual concessional and non-concessional contribution caps still apply to any contributions made under the work test exemption.
SMSF members also can access the unused concessional cap under concessional cap bring forward rules for 12 months.
It is important to make sure SMSF member’s total superannuation balance must be less than $300,000 to use the work test exemption. Also, three-year bring forwards rule can be allowed based on the 2018/19 MYEFO announcement.
SMSF member aged 65 to 74 must work 40 hours in consecutive days to be able to make voluntary contributions if his/her total superannuation balance is more than $300,000.
Should you have any questions in regards to this exemption, please feel free to contact us.