Super Contribution at Different Age

smsf contribution age

A member’s age affects not only the contribution cap amount, but the conditions to accept contributions. Regulation 7.04 stipulates acceptance of contributions for members at different age.

General rules

A condition applying to all super funds in accepting contribution is that member’s tax file number has to be quoted to the fund.

The fund must not accept any contribution that exceeds the member’s non-concessional cap. This particular measure will stop fund from accepting a single amount of more than $450,000 for those under age 65 and more than $150,000 for those aged 65 to 74.

The legislation also specifies here for the purpose of bringing forward three times the amount of the non-concessional contributions cap, ‘under 65’ means a member is 64 or less on 1 July of the financial year.

Regardless of a member’s age, mandated employer contributions can always be accepted. Mandated employer contributions include Superannuation Guarantee (SG) and contributions required to be made under an industry award or agreement. From 1 July 2013, there is no upper age limit for SG contributions.

Under 65

This is the age group with the most flexible rules on acceptance of contributions. If a member is under 65, the fund may accept contributions that are made in respect of the member subject to the general rules above.

From 65 to 69

For a fund to accept contributions other than employer mandated contributions, anyone aged 65 or above must satisfy work test. Work test is simply gainfully employed for at least 40 hours during a consecutive 30-day period each financial year.

From 70 to 74

The difference that applies to this age group from the previous group aged between 65 to 69, is that personal contribution can only be made by member, in other words, no eligible spouse contributions can be made.

It’s interesting how 74 is defined for this purpose: “contributions received on or before the day that is 28 days after the end of the month in which the member turns 75”. So a member can stay at 74 for a bit longer than a year.

From 75

Only mandated employer contributions can be made for those aged 75 and above.

Contribution cap

In 2012-2013 financial year, 2013-2014 financial year, the concessional contributions cap is $25,000 regardless of member’s age. The proposed increase in concessional contribution cap for those over 50 years is delayed.