Changes to Superannuation Work Test Age -WealthVisory Private Clients


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Increasing the age at which the superannuation work test applies from 65 to 67, from 1 July 2020, provides an additional opportunity to implement voluntary super contribution strategies.

The 2019 Federal Budget contained a number of proposed changes to superannuation in order to provide individuals with more flexibility around planning for their retirement, particularly in the area of contributions.As announced, and proposed to apply from 1 July 2020, Australians under the age of 67 will be eligible to make voluntary super contributions without needing to meet the work test1. This is an increase to the current requirement of needing to be under age 65, and from a policy perspective, is designed to progressively align the work test with the eligibility age for the age pension (currently legislated to increase from age 66 to age 67 for both men and women by 1 July 20232).

In addition, the proposed measures would increase the bring-forward age to allow individuals under the age of 67 to make non-concessional contributions to super of up to $300,000 where all other eligibility criteria3 has been met.


Should the measures be legislated, the proposed changes create a unique opportunity for individuals aged 65 and 66 who may now look to make additional contributions to super, where previously they may not have been eligible to contribute.

Currently, while under the age of 65 an individual can make voluntary contributions to super without needing to work. However to access their preserved benefits, they need to have first met a condition of release4.

One of the most common conditions of release is reaching your preservation age5 and then retiring, or, attaining age 65 at which point you automatically meet a condition of release based on age, regardless of your current work status, patterns or intentions.

As proposed, from 1 July 2020 individuals aged 65 and 66 could make voluntary contribution to super without needing to meet the work test6. They would then have the choice to immediately withdraw this amount, or immediately start a retirement income stream as they have automatically met a full condition of release based on age.

This new opportunity may help individuals who have not yet saved the amount they were targeting in super, as they could now find themselves with an additional few years to contribute. Plus, it could allow individuals who have come into additional money later in life to utilise superannuation more effectively, all while providing additional years to implement contribution, estate planning or spousal balance equalisation strategies.


This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent financial advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.

Matthew Rutter, Director/Head Financial Advisor of WVPC

Matthew has a wide ranging background in business, finance, taxation and accounting with over 25
years’ experience, firstly as an Accountant before becoming a Financial Planner. Matthew has been in
the Financial Planning Industry since March 1998 and has been the principal of his own financial
planning practice since 2003.

Matthew has studied a Bachelor of Commerce degree from Newcastle University majoring in Financial
Accounting and the Diploma of Financial Planning from Deakin University. Matthew is a Registered Tax
Agent and is a member of the National Tax & Accountants Association (NTAA).

Matthew has particular expertise in the areas of retirement planning, superannuation, investments and
insurance. His emphasis is on building a professional, integral and lasting relationship with clients with
the objective of assisting them to achieve their financial and lifestyle goals.


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