Bring Forward Non-Concessional Contribution for Over 65s

Keep in mind the following information is General Advice and is obviously not personalised for your unique needs, objectives or financial situation. Please get in touch with your advisor before taking any action on the below points so they can advise on the appropriateness of this for you.

The Australian Government previously committed to delivering on their proposal to increase flexibility for those in their mid-60s to make super contributions and other superannuation measures.

The Government proposed that from 1 July 2020;

  • those aged between 65 to 66 may be eligible to make or receive super contributions of up to $300,000 without meeting the 40 hours in a 30-day period work test criteria, and
  • those turning 66 and 67 years old could also trigger the non-concessional contribution ‘bring forward’ arrangements.

The ‘bring forward’ rule allows eligible members to bring-forward up to an additional ‘two years’ of personal (post-tax) contributions, allowing them to contribute a greater amount (of up to $300,000 in 2020-21) without exceeding their non-concessional cap.

For details on the current contribution caps, refer to​ ​

The Treasury Laws Amendment (More Flexible Superannuation) Bill 2020, responsible for the ‘bring forward’ arrangements is currently before parliament, however, due to COVID-19 the parliamentary sitting has been postponed delaying the passage of the Bill through both Houses.

Unfortunately, until legislation is passed anyone turning 66 or 67 years old cannot trigger the non-concessional ‘bring forward’ arrangements during this time.

On the plus side, regulations are now in effect so that:

  • From 1 July 2020 those aged 65 or 66 years old can make and receive voluntary concessional and non-concessional contributions without meeting the work test criteria.

In order to meet the work test, you need to have been gainfully employed or self-employed (for gain or reward) for at least 40 hours in a period of no more than 30 consecutive days in the financial year (ending 30 June), before making the contribution.

As a result of the current economy given the ongoing state of emergency, numerous policies and laws are in a state of flux. Managing the implications of such changes presents challenges, so it’s important to stay aware of them.

If you would like to discuss any of the above superannuation law matters, please ​reach out to your Morrows advisor.

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