The work test for super contributions after age 67: what counts and what doesn't

For members making super contributions in their late 60s and early 70s, the rules changed materially in 2022. The "work test" — historically a condition for many voluntary contributions by members aged 67-74 — was substantially relaxed. The reform reduced administrative burden and aligned the over-67 framework more closely with the under-67 framework. But the reform did not remove the work test entirely; one specific category retained the requirement, and members not aware of the distinction can find their tax-effective contribution strategy unavailable.

Before 1 July 2022, the work test applied broadly to voluntary contributions by members aged 67-74. Members had to be gainfully employed for at least 40 hours within a consecutive 30-day period during the financial year before making most voluntary contributions. The test applied to non-concessional contributions, salary sacrifice, personal deductible contributions, spouse contributions, and others. The test was administratively burdensome and conceptually awkward — it tied super contribution capacity to ongoing employment, even where the member's wealth and circumstances made super contribution sensible without further work.

From 1 July 2022, the work test was substantially relaxed. Non-concessional contributions (NCCs) by members aged 67-74 no longer require the work test, subject to the annual NCC cap and the Total Super Balance threshold rules but with no employment requirement (ATO — non-concessional contributions, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/contributions-you-can-make/non-concessional-contributions, accessed 6 May 2026). Salary sacrifice contributions for members aged 67-74 also no longer require the test, and salary sacrifice was always essentially redundant for the test in any case because it is paid from employment income. Spouse contributions to a member aged 67-74 do not require the receiving spouse to satisfy the work test. For these three categories, the practical effect of the 2022 reform was to remove a significant compliance hurdle. A 70-year-old retiree wanting to make a $100,000 NCC from inherited or accumulated savings can do so without satisfying the work test — subject only to the cap and TSB rules ($120,000 single-year NCC cap and $360,000 three-year bring-forward cap in FY25-26, with reduced or zero NCC capacity once TSB exceeds the relevant threshold).

The reform did not remove the work test for personal deductible contributions by members aged 67-74. To claim a tax deduction for a personal super contribution at that age, the member must satisfy the work test — 40 hours in any 30-consecutive-day period during the financial year — under SIS Regulations 1994 reg 7.04 (https://classic.austlii.edu.au/au/legis/cth/consol_reg/sisr1994582/s7.04.html, accessed 6 May 2026), with the deduction-claiming framework set out in the ATO's guidance on claiming deductions for personal super contributions (https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/contributions-you-can-make/personal-super-contributions/claiming-deductions-for-personal-super-contributions, accessed 6 May 2026). The retention of the test for personal deductible contributions reflects the policy that tax deductions for super contributions are linked to employment income — the deduction is most meaningful for working members.

For a fully retired member aged 67-74, the consequence is that personal deductible contributions are not available unless an exemption applies. The member can still contribute as NCC (no work test, no deduction), but the tax benefit of the personal deductible route is unavailable. Separately from the work test, members aged 75 or older generally cannot make voluntary contributions other than the downsizer contribution and certain mandated employer contributions; in practice, voluntary contributions must reach the fund within 28 days after the end of the month in which the member turns 75. So the work test becomes academic at 75 because the contribution itself is no longer permitted.

For practical purposes, members aged 65 to 66 face no work test for any voluntary contribution; members aged 67 to 74 face no work test for NCCs, salary sacrifice, or spouse contributions, but a work test for personal deductible contributions; and members aged 75 or older generally cannot make voluntary contributions (downsizer aside). The 67-74 window is where the work test has practical relevance.

For the work test, gainful employment means paid work for gain or reward. It includes employment by an external employer for wages, self-employment for gain or reward, and part-time, casual, contract, and consulting roles where genuinely paid. It excludes volunteering, unpaid charitable work, and hobby activities. The 40 hours can be done in a single 30-day period or spread across that period; once 40 hours within a 30-day window have been done during the financial year, the work test is satisfied for the year. A specific carve-out applies for temporary incapacity — where a member is temporarily unable to work due to medical incapacity, the work test may be deemed satisfied in defined circumstances.

A specific work test exemption applies for recently-retired members. A member can make voluntary contributions in a financial year without satisfying the current-year work test if they met the work test in the previous financial year, did not engage in paid work in the current year, and had a Total Super Balance of less than $300,000 at the end of the previous financial year (ATO personal super contributions guidance, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/contributions-you-can-make/personal-super-contributions, accessed 6 May 2026). The exemption applies once and is intended to allow recently-retired members to make a final post-retirement contribution that uses the deduction. The practical use is limited (the timing window is narrow, and the $300,000 TSB threshold excludes wealthier members), but for some recently-retired members it captures a one-off opportunity to make a personal deductible contribution after they've stopped working.

For members aged 67-74 considering tax-effective super contributions, the strategic implications follow directly from the test's narrow scope. If still working, full contribution flexibility applies — personal deductible, salary sacrifice, and NCC are all available, with the work test satisfied by the work itself. If fully retired, NCC and spouse contributions remain available without the work test, but personal deductible contributions are unavailable unless return-to-work occurs or the work test exemption applies. For final-year contributions before age 75, NCC capacity is substantial but personal-deductible capacity is limited unless work continues. And the work test exemption is a narrow but useful one-off opportunity for the right circumstances.

What do worked strategy examples show?

These two cases show the work test in action — when continued paid work keeps the personal deductible door open, and when the recently-retired exemption captures a final opportunity. Illustrative only — not personal advice — using FY25-26 figures.

Case 1 — Frank, 71, semi-retired, doing roughly 12 hours per week of consulting for his old engineering practice on a paid contract basis. Frank's TSB on the previous 30 June was $420,000 (under the $500,000 threshold for carry-forward concessional contributions). He has roughly $80,000 of unused concessional cap room available in carry-forward from prior years, and his consulting brings in about $36,000 of taxable income each year. On these facts, the work test is comfortably satisfied because 12 hours per week sustained over four weeks is around 48 hours within any 30-day period — well above the 40-hour threshold under SIS Regulations 1994 reg 7.04. Frank can make a personal deductible contribution this year up to the FY25-26 $30,000 standard cap plus part of his carry-forward room (subject to TSB rules), claim the tax deduction against his consulting income, and reduce his marginal-rate tax cost. The trap to avoid is two-fold: lodging a notice of intent to claim the deduction with the fund before he claims the deduction in his tax return (mandatory under the personal-deductible framework), and ensuring his hours and pay are documented if the ATO ever asks — the test is on him to evidence.

Case 2 — Helen, 68, fully retired since 30 June last year. Helen's TSB at 30 June was $260,000, comfortably under the $300,000 work-test-exemption threshold, and she had been working full-time as an admin manager up until her retirement (so she met the work test in the immediately preceding financial year). She has $40,000 of CGT income this year from realising a long-held share parcel and would like to offset some of it through a personal deductible contribution. On these facts, the recently-retired work test exemption is generally available: she met the test in the previous year, has not engaged in paid work this year, and had TSB under $300,000 at the previous 30 June (ATO personal super contributions guidance). She can make a personal deductible contribution this year — within the $30,000 FY25-26 concessional cap (plus any carry-forward room she has) — without satisfying the current-year work test, claim the deduction to absorb part of her CGT income, and lodge the notice of intent before lodging her return. The trap to avoid is that the exemption is one-off — next financial year she will be a fully retired member with no work test exemption available, so this year is the window if her financial circumstances make the personal deductible route useful. NCC contributions remain available without any work test concern in either year.

A few common pitfalls remain worth flagging beyond the worked cases. Assuming the work test applies to all contributions misses the 2022 reform — only personal deductible contributions for members aged 67-74 require it. Not satisfying the test before contribution timing — the test must be satisfied during the financial year of the contribution. Misunderstanding "gainful employment" — volunteering, hobby work, and unpaid activities don't qualify. Forgetting the work test exemption — recently retired members may qualify for the one-off exemption when their TSB is below $300,000 at the previous 30 June. And assuming the work test is gone entirely — some advisers and clients believe the 2022 reform removed all work test requirements and are surprised when a personal deductible contribution claim is rejected.

The 2022 reform was a meaningful simplification of super contribution rules for older members, but it didn't remove the work test entirely. For the personal deductible category — where the tax benefit is largest — the work test endures. For retirees considering tax-effective contributions in their late 60s or early 70s, the distinction between contribution categories matters. NCC contributions are easy. Personal deductible contributions, with their tax deduction, require either continued work or the narrow recently-retired exemption window. Knowing which is which is the planning task.

Sources

• Australian Taxation Office (ATO) — Personal super contributions
• Australian Taxation Office (ATO) — Claiming deductions for personal super contributions
• classic.austlii.edu.au — S7.04
• Australian Taxation Office (ATO) — Non concessional contributions
• MoneySmart (ASIC) — Super contributions