When a member turns 65 years old, they can withdraw their benefits from their SMSF without any restrictions. However, on the flip side, in order to make contributions to the SMSF, members need to meet their eligibility requirements as per Regulation 7.04 of the Superannuation Industry (Supervision) Regulations 1994.

Generally, contribution eligibility is dependent on the member’s age and types of contribution which are summarized as follows:

Type/AgeUnder 6565-69 (inclusive)70 to 74 and up to 28 days after the end of the month in which member turns 7575 onward
Mandated employer contributionWork test not requiredWork test not requiredWork test not requiredWork test not required
Voluntary employer contributionWork test not requiredWork test must be satisfied at some time in the financial year PRIOR to contributionWork test must be satisfied at some time in the financial year PRIOR to contributionContribution MUST NOT BE accepted
Personal contributionWork test not requiredWork test must be satisfied at some time in the financial year PRIOR to contributionWork test must be satisfied at some time in the financial year PRIOR to contributionContribution MUST NOT BE accepted
Spouse and third party contributionWork test not requiredWork test must be satisfied at some time in the financial year PRIOR to contributionContribution MUST NOT BE acceptedContribution MUST NOT BE accepted

To satisfy the work test, the member must have been gainfully employed on at least a part-time basis for at least 40 hours in a period of 30 consecutive days in the relevant financial year.

Where the member turns 65 in middle of the year, the confusion is when do they need to meet the work test requirement? The following example will explain how the legislation should be elaborated.

DateAgeEventsRequirements
1 July 201464Member is 64 years old
5 July 2014Contributions received by the fundNo work test required
1 October 201465Member turns 65 years old
20 December 2014Mandated employer contribution received by the fundNo work test required
1 Feb 2015Salary sacrifice or personal contributions received by the fundWork test required as member is over 65 and the contribution is not mandated employer contribution.
Work test must be met BEFORE receiving the contribution.