Are you or a family member aged over 67?

Do you have investment assets outside of superannuation?

Currently, if you are aged 67 to 74 years old, you can only contribute to your superannuation fund if you meet the “work test”.

To satisfy the “work test,” you need to be working at least 40 hours over 30 days in the financial year. So, if you have investment assets excluding superannuation, you cannot consider transferring those assets into your super fund unless you work the above hours.

However, from the 1st July 2022, this work test requirement has been removed for 67 to 74-year-olds. Now, 67 to 74-year-olds have the opportunity to make non-concessional contributions to their superannuation fund. Non-concessional contributions are not tax-deductible, and they are currently limited to $110,000 per year. Again depending on your age, you may be entitled to make the current year contribution up to two years in advance, meaning you can transfer up to $330,000 into your superannuation fund.

So why is this appealing?

If you are over 67 and not working, you have investment assets in your name that you have accumulated. Or you have sold an investment property or shares, or you received an inheritance, rather than the earning on those investments being subject to tax at your marginal rate. They can be transferred to your superannuation fund and potentially pay a lot lower tax rate, if any.

If you transfer these monies into your superannuation fund, the earnings will be taxed at a maximum rate of 15% or possibly NIL% if you are in retirement/pension mode.

The tax-saving over the remaining term of your life could be pretty substantial.

Should you require further eligibility information to qualify for this superannuation strategy, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.

The information in this document does not take into account your personal objectives, financial situation or needs, and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.