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.
The main rules applying to your super during your 60s are split between those covering:
- When money goes into your super account (contributions)
- When money comes out (withdrawing).
1. Contributing to super
Superannuation Guarantee (SG)
If you are aged over 60, your employer must still pay SG contributions on your behalf into your super account. The SG contribution rate is currently legislated to rise incrementally to 12% in July 2025.
If you meet the eligibility conditions, SG contributions are payable regardless of whether you are classed as working full time, part time or as a casual, or if you are a temporary resident.
If you are a contractor paid ‘wholly or principally for labour’, you may be considered an employee for super purposes and entitled to SG payments.
Your employer is not required to make SG contributions on your behalf if you don’t meet the SG eligibility conditions, such as if you are a domestic worker like a nanny or housekeeper and you work less than 30 hours per week.
Super fund stapling
When you start a new job you must inform your employer about which super fund you would like them to make regular SG contributions into on your behalf.
If you don’t advise your employer of your choice of super fund, they are required to check with the ATO to see if you have any existing super fund accounts into which they can make their SG contributions. This existing super fund account is called your stapled account, as it is linked to you and follows you as you change jobs.
Stapling is designed to stop new super accounts being opened every time you change employer, so you don’t end up paying multiple account fees. You are free to change your stapled account at any time by providing your employer with the details of your new super fund.
Contributions caps
Even though you are in your 60s, there are still annual limits or caps on the amount of money you and your employer can contribute into your super account.
From 1 July 2024, the annual general concessional (before-tax) contributions cap is $30,000 for everyone, regardless of their age.
You can also carry forward concessional contributions if you qualify. Carry forward allows you to take advantage of any of your unused annual concessional contributions caps from the previous five financial years to make a larger concessional contribution.
From 1 July 2024, the annual general non-concessional (after-tax) contributions cap is $120,000. If your total super balance was equal to or more than the general transfer balance cap on 30 June of the previous financial year, your non-concessional cap is zero. In 2024–25 the transfer balance cap is $1.9 million.
Bring-forward contributions
Giving your super a last-minute boost with a big contribution can be a smart move and you are now able to do that until you turn 75. (Technically you can do it until 28 days after the month in which you turn 75, by why wait until then?) Once you reach age 75, you’re not permitted to trigger a bring-forward arrangement.
Under the bring-forward rules, you may be able to contribute up to three years of your annual non-concessional contributions cap ($120,000 x 3 years = $360,000) in a single year. The actual amount you can contribute using the bring-forward rule depends on your Total Superannuation Balance (TSB) on 30 June of the prior financial year.
Personal (or voluntary) tax-deductible super contributions
If you’re in your 60s and have some spare cash available, it may be worth considering making a personal voluntary contribution into your super account and claiming a tax deduction for it.
From age 60 to 66, you can make tax-deductible super contributions whatever your work status.
To make this type of contribution when you’re aged between 67 and 75, the ATO requires you to meet the work test for your contributions to be considered a valid tax deduction.
Under the conditions of the work test, you need to be ‘gainfully employed’ for at least 40 hours in 30 consecutive days during the financial year in which you wish to make your tax-deductible super contribution.
No personal contributions can be claimed as a tax deduction when you are aged 75 or more.
Downsizer contributions
As you’re older than age 55, you have the opportunity to make super contributions using the downsizer rules, which have no work test requirement or upper age limit.
Downsizer contributions allow you to contribute up to $300,000 ($600,000 for a couple) from the sale of your main residence to your super. These contributions are not counted towards your annual contribution caps.
Self-managed super funds (SMSFs)
Many people approaching retirement think about establishing their own SMSF to take more control of their retirement savings and to pay themselves a regular super pension. However, it’s important to be aware SMSFs must adhere to lots of rules and you will have the ATO looking over your shoulder.
An SMSF can have no more than six members at any one time and no member can be an employee of another member unless they are related.
You can’t be a trustee of an SMSF if you have been convicted of an offence involving dishonest conduct, been subject to a civil penalty under super law, are insolvent or an undischarged bankrupt, or been disqualified from acting as a trustee of a super fund.
2. Withdrawing your super
Getting your money
Even though you have reached your preservation age , you still need to meet a condition of release to access your super benefit.
These conditions include retiring, ceasing an employment arrangement after 60 and reaching age 65. Meeting any of these conditions will permit access to your entire super balance.
Alternatively, when you are aged between 60 and 65, you can use the transition-to-retirement condition of release to start a pension that can pay up to 10% of your balance each year. See the transition-to-retirement section below.
Paying tax on your super
Once you reach age 60, most people can take their super benefit free of tax (apart from members of untaxed super funds).
Taking a super pension
If you start a super pension, you must withdraw a minimum amount from your pension each financial year. This minimum amount is based on your age and is set by the government.
Transition-to-retirement pensions
For people in their 60s who are still working, it could be worth starting a transition-to-retirement (TTR) income stream. This allows you to gradually draw on your super benefits while you’re still working. A TTR pension could allow you to reduce your work hours by topping up your income with the money withdrawn from super or can be combined with salary sacrifice to make the most of tax savings and help boost your balance before retirement.
