The Minister for Revenue and Assistant Treasurer, Senator Coonan, today announced that through the 2002-03 Budget the Government has given effect to its superannuation election commitment to allow working people aged over 70 but less than 75 to make personal contributions to superannuation. This initiative will commence on 1 July 2002.
The Government recognises the choice made by some people to continue working past the age of 70 whilst looking forward to their retirement years. This initiative will allow people aged between 70 and 75 to make superannuation contributions if they are working at least 10 hours per week. Until now, superannuation funds have only been able to accept mandated employer contributions (such as those made under an industrial award) on behalf of workers over 70.
Individuals aged over 70 who are making personal superannuation contributions will not be eligible for an income tax deduction because they can access their superannuation at any time.
This measure does not extend the Superannuation Guarantee arrangements to people working past age 70. It will not allow employers to make contributions for employees aged over 70, except for mandated employer contributions required under an industrial award.
As a consequence of this measure, the Government will also be changing the compulsory cashing rules for those aged between 70 and 75. Benefits must be compulsorily cashed only if the member is working fewer than 10 hours per week, rather than the 30 hours currently required for these members. The 30 hour standard will remain for people aged over 75.
To complement this measure, the Government has asked Treasury to review the monitoring requirements for superannuation funds in respect of the work test applying to people aged over 65.