Personal super contributions: deduction work test modification

The ATO has released a Draft Legislative Instrument proposing to use the Commissioner’s remedial power (CRP) to modify the “work test” under s 290-165(1A) of the ITAA 1997 to deduct personal super contributions, with date of effect from 1 July 2022.

Draft LI 2023/D11 proposes to modify s 290-165(1A) to ensure that individuals aged 67-75 who are “employees” under the expanded meaning in ss 15A(2) to 15A(10) of the SIS Act can continue to deduct a personal super contributions as if the work test had not been relocated from the SIS Regs to the ITAA 1997 in 2022. The proposed modification will ensure that such “covered persons” (eg company directors, constitutional or statutory office holders, parliamentarians and ADF members) who may not otherwise be common law employees under the ITAA 1997, are capable of meeting the “work test”, provided that they otherwise meet the relevant criteria.