SUPERANNUATION: WORK TEST EXEMPTION (WTE)

Superannuation is widely considered to be one of the most tax-effective investment structures available for wealth accumulators and retirees alike.

As such, from a retirement planning standpoint, building wealth inside superannuation through contributions (and, compound investment returns) can be an important focus before reaching your retirement years.

However, making voluntary contributions to your superannuation can prove more difficult the further you progress through life, especially when considering contribution eligibility rules for those aged 65 and over.

With this in mind, the Government has sought to provide additional flexibility for those aged 65 to 74 via a one-year work test exemption (WTE) that takes effect from 1 July 2019. In our animation, we illustrate how this exemption works.