There are lots of rules when it comes to our super system. But not every rule applies to you at every age, so it’s worth figuring out which ones have an impact in your age group.
The rules at different ages govern how much and when you can contribute to super, when you can get your hands on your savings and how much tax you will pay. These rules are designed to ensure super is used for its intended purpose – for retirement income – in exchange for the generous tax benefits offered as part of Australia’s super system.
To make things a bit easier to understand, here’s SuperGuide’s simple explainer of the super rules applying in the final years before retirement.
Super rules if you’re in your 60s
Once you turn 60, the rules of the super system change. The key differences are that withdrawing money from your super is now free of tax if your savings are in a taxed super fund (the most common type), and you have reached your preservation age which makes accessing your super possible.
Traditionally it hasn’t all been plain sailing in your 60s, as once you hit age 67 you needed to meet the requirements of the work test or work test exemption if you wanted to make many of the normal super contributions.
Fortunately, from 1 July 2022 the work test has been abolished if you want to make salary-sacrifice, spouse and non-concessional (after-tax) contributions into your account. But just to keep you on your toes, the work test (or work test exemption) remains in place if you’re aged between 67 and 75 and want to make a personal super contribution for which you intend to claim a tax deduction.
If you are aged 55 or older, you can also make a downsizer contribution into your super account of up to $300,000 from the total proceeds of selling your home.
Learn about contributing in your late 60s.
