Definition of “employee” clarified for “work test” eligibility

The Government registered the Taxation Administration (Remedial Power – Work Test for Personal Superannuation Contributions) Determination 2023.The legislative instrument (LI) modifies the operation of s 290-165(1A) of the ITAA 1997 to ensure that all individuals aged 67 to 75 years who are employees under s 15A of the Superannuation Industry (Supervision) Act 1993 (“SIS Act”) are still eligible to claim a deduction for their personal superannuation contributions.

This follows the relocation of the “work test” from the Superannuation Industry (Supervision) Regulations 1994 (“SISR”) and Retirement Savings Accounts Regulations 1997 (“RSAR”) to the ITAA 1997, which came into effect on 1 April 2022 and apply to contributions made on or after 1 July 2022.

The instrument also applies to personal superannuation contributions made on or after 1 July 2022. A draft version was issued in April 2023 for consultation and there are no changes.