Claiming a Deduction on Super Contributions: A Guide for Ages 67–75

If you’re aged between 67 and 75 and want to claim a tax deduction for personal super contributions, special rules apply. You’ll need to meet the work test (or in some cases, the one-off work test exemption). Understanding these requirements is essential to maximise your retirement savings and stay compliant with ATO rules.

What Is the Work Test?

The work test requires that you are gainfully employed for at least 40 hours in any 30 consecutive days during the financial year.

To qualify as “gainfully employed,” you must be:

• An employee (working for an employer for pay), or
• Self-employed (running your own business for gain or reward).

It does not include unpaid volunteer work or purely passive income such as rent, dividends, or bank interest.

Are You Really Running a Business?

Employment is usually straightforward to establish. Self-employment, however, can be more complex. The ATO looks at the overall picture. The more of the following questions you can answer “yes” to, the more likely you are running a business (and therefore considered “gainfully employed”):

• Profit purpose and prospect: Do you intend to make a profit, and is it realistic?
• Size and scale: Is your activity big enough to generate meaningful income (turnover, stock, equipment, or capital invested)?
• Repetition and regularity: Are you operating continuously rather than on a one-off basis?
• Business-like manner: Do you keep records, have a business account/ABN, advertise, hold licences, or operate from premises?
• Not a hobby: Is it more than just a hobby, recreation, or passive investment?

Example of a business: Running a market stall or online shop with an ABN, proper records, and a goal of making a profit.
Example of a hobby: Selling occasional handmade items to friends without record-keeping or an intention to profit.

Meeting the Work Test

If you are employed or genuinely running a business, you can satisfy the work test by working 40 hours within any 30-day period in the financial year. Once met, you’re eligible to claim a deduction on your personal super contributions for that year.

Work Test Exemption

If you can’t meet the work test this year, you may still qualify for the one-off work test exemption, provided all of the following apply:

1. You met the work test in the previous financial year
2. Your total super balance was under $300,000 at 30 June of the previous year
3. You have never used the exemption before

Contribution Timing Near Age 75

Super funds can generally accept personal contributions up to 28 days after the end of the month you turn 75. Beyond that point, your options are limited to:

• Employer Super Guarantee contributions
• Downsizer contributions (if eligible)

Final Thoughts

Claiming a tax deduction for super contributions between ages 67 and 75 can be complex, particularly with the work test and exemption rules. Making the right decision can help you boost your retirement savings while minimising tax.

If you’re unsure whether you qualify—or how to structure your contributions—seek advice before making a move.

Need help claiming your deduction? Call us today to discuss your options and make sure your super contributions work for you.