Australia increases maximum ages to make pension contributions

Australia increases maximum ages to make pension contributions

The maximum ages for making certain voluntary pension contributions in Australia will increase under measures included in the Superannuation Legislation Amendment (2020 Measures No. 1) Regulations 2020. The measures will apply to contributions made on or after 1 Jul 2020. 

Highlights

  • The maximum age for voluntary contributions will increase from age 64 to 66 for members who aren’t required to meet the work test or work test exemption.
  • The maximum age for making spousal contributions to funds will increase from age 70 to 74, subject to the spouse fulfilling the work test or work test exemption (if aged 67 to 74).

Also, a proposal in parliament would extend the three-year non-concessional contribution bring forward rule to the end of the financial year in which the member reaches age 67. Currently, the cutoff for triggering the bring forward rule is the end of the financial year in which the member reaches age 65. The measure features in the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020, and although the bill won’t receive Royal Assent until later in 2020, it will be backdated to contributions made on or after 1 Jul 2020. 

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Paul Shallue
by Paul Shallue

Principal, Mercer Wealth

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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