Latest News

Hot Issues
spacer
Aged care report goes to the heart of Australia’s tax debate
spacer
Removed super no longer protected from creditors: court
spacer
ATO investigating 16.5k SMSFs over valuation compliance
spacer
The 2025 Financial Year Tax & Super Changes You Need to Know!
spacer
Investment and economic outlook, March 2024
spacer
The compounding benefits from reinvesting dividends
spacer
Three things to consider when switching your super
spacer
Oldest Buildings in the World.
spacer
Illegal access nets $637 million
spacer
Trustee decisions are at their own discretion: expert
spacer
Regular reviews and safekeeping of documents vital: expert
spacer
Latest stats back up research into SMSF longevity and returns: educator
spacer
Investment and economic outlook, February 2024
spacer
Planning financially for a career break
spacer
Could your SMSF do with more diversification?
spacer
Countries producing the most solar power by gigawatt hours
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
Quarterly reporting regime means communication now paramount: expert
spacer
Plan now to take advantage of 5-year carry forward rule: expert
spacer
Why investors are firmly focused on interest rates
spacer
Super literacy low for cash-strapped
spacer
Four timeless principles for investing success
spacer
Investment and economic outlook, January 2024
spacer
Wheat Production by Country
spacer
Time to start planning for stage 3 tax cuts: technical manager
spacer
Millions of Australians lose by leaving savings in default MySuper funds
spacer
Vanguard economic and market outlook for 2024: A return to sound money
spacer
An investment year of ups and downs
spacer
How to tame the market's skewness
spacer
The Countries that Export the Most Wine in the World
spacer
Tips for preparing for the best tax outcomes
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2016 archive
spacer
Making investing a family affair
spacer
Super and divorce: a personal finance issue
spacer
Market Update - May 2016
spacer
ASIC flags SMSF investors in scam risk
spacer
Older, greyer and still working
spacer
Working and contributing to super past 65
spacer
The pitfalls of part-year pensions
spacer
Replenishing SMSF memberships
spacer
Budget will hit 15% of SMSFs
spacer
The insidious side of low interest rates
spacer
Market Update - April 2016
spacer
Budget 2016-17
spacer
Do investment principles stand test of time?
spacer
Estate Planning - early inheritance
spacer
US economy will bend, not break
spacer
A detailed look at the ATO’s new LRBA guidance
spacer
Defying life's blueprint
spacer
ATO continuing lodgement crackdown
spacer
Another twist on the gender savings gap
spacer
Market Update – March 2016
spacer
Going solo
spacer
Use our online budgeting tools to help plan your future.
spacer
Age Pension means-test prevents rational decision-making
spacer
Changing times for super collectables
spacer
Preservation Age Rule
spacer
Why investing for retirement isn't just about super
Working and contributing to super past 65

 

One of the ways that more Australians are boosting their retirement savings is by working beyond popular retirement ages – often on a part-time basis.

       

One of the ways that more Australians are boosting their retirement savings is by working beyond popular retirement ages – often on a part-time basis.

This leads to a fundamental question: In what circumstances can super fund members aged 65-plus and working on a part-time basis keep contributing to super?

The fact that 13 per cent of Australians aged 65 and over are still in the paid workforce or looking for paid work almost certainly won’t grab any headlines.

However, it is worth emphasising that this percentage is 2.6 times greater than 30 years ago, as recorded in the latest quarterly Australian labour force report from the ABS.

Given this long-term trend, it is clear that older super fund members will increasingly ask whether they can continue make super contributions. And no doubt many of these fund members will put this question to an adviser who understands their circumstances and the intricacies of superannuation law.

Currently, super funds can only accept non-mandated super contributions – such as personal non-concessional (after-tax) contributions and salary-sacrificed contributions – for members age 65-74 years of age who satisfy a work test.

To meet the work test, members must work at least 40 hours over not more than 30 consecutive days during the financial year in which a contribution is being made. This does not include unpaid work.

However, the Government proposes in the latest federal Budget to fully remove the contributions work test from July 2017 for members aged 65 to 74.

In short, this means that if the Budget proposals become law, contributions could be made for or by any member aged under 75.

Once members reach 75, super funds are no longer allowed to receive super contributions made on their behalf – apart from so-called mandated employer contributions. (These are superannuation guarantee contributions and contributions under an industry award/agreement.) No age limit applies with mandated contributions.

Many trustees of self-managed super funds have good reason to take a particular note of the rules on contributions for older members. This is partly because of the age demographics of the SMSF sector, which holds more than half of all superannuation assets invested in retirement products (including transition-to-retirement pensions).

The tax office publishes a useful guide for SMSF trustees: Contributions you can accept.

 

By Robin Bowerman
Smart Investing 
Principal & Head of Retail, Vanguard Investments Australia
04 May 2016 | Retirement and superannuation

Site by Plannerweb