While the pension age has been gently shifting upwards other age limits have not budged meaning there hasn’t been an alignment between eligibility. Recently the federal government registered changes to the regulations to fix this.
Let’s go through what this means and what is still in the pipeline.
Previously you had to be 65 to receive a government age pension and continue to meet the work test in order to make contributions to super. Read our blog here for more details regarding the work test: What is the work test?
However legislation changes made some time ago has increased the government age pension age to 67.
This meant that the thresholds were not aligned.
This has now changed. From 1 July 2020 those aged 65 and 66 can continue to make contributions to super without having to meet the work test.
At this stage however we have not seen an increase in the age for utilising the bring forward rule (see our blog for more details about these contributions: Contribution Caps 2019
This is because this is a change to the income tax act and will need to be passed through both houses of parliament, however it would seem likely that these changes will be successful. Watch this space for more updates and get in touch with us here to check your eligibility.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.