For any of your clients who are 67 and over and want to continue to make contributions during the 2020/21 financial year, they’ll need to meet the work test or qualify for the work test exemption.
What do your clients need to do?
This year, clients 67 or over (previously 65) must have been gainfully employed for a minimum of 40 hours during a 30 consecutive day period, before contributions can be accepted.
In order to declare that they have met this condition we require clients to complete and sign the Notification of Eligibility for Superannuation Contributions form, otherwise known as the work test.
Once this form has been returned to us, we can continue to accept any contributions they make during the 2020/21 financial year.
Your clients may be eligible to contribute under the work test exemption. The work test exemption allows clients to make voluntary contributions if they have met the work test in the previous financial year and their total superannuation balance on 30 June of the previous financial year was below $300,000. Note, the client can only use the work test exemption once in their lifetime.
The client can complete the work test exemption section of the Notification of Eligibility for Superannuation Contributions form, to declare that they have met this condition.
Important note: if your client has completed and returned this form signed prior to Friday 3 July 2020 we won’t be able to accept it and a new form will be required.
Is a new form required each financial year?
Yes, to continue making contributions your clients will need to submit a new form each year.
What if the work test is not provided?
Your client will have to let us know that they have met the work test or that the contributions are mandated employer contributions, within 20 calendar days of a contribution being made. If not, we will start the refund process and the contribution will be returned to the source within 30 calendar days.
We’re contacting your clients
Any clients who are 67 years or over or who will turn 67 this financial year and have contributed in the last 12 months will be contacted in July 2020. We’ll let them know about these requirements and provide them with the Notification of Eligibility for Superannuation Contributions form.
You can visit Adviser Help Centre to view all our End of Financial Year resources.