Updated on 16 June 2026
The Work Test Exemption (WTE) was introduced on 1 July 2019 and continues to provide eligible retirees with an additional opportunity to contribute to super after they stop working.
While the work test rules have been changed in recent years, the Work Test Exemption remains an important strategy for individuals aged 67 to 74 who wish to claim a tax deduction for a personal super contribution after retiring.
For those who qualify, the exemption can provide an additional financial year to make valuable super contributions and potentially boost retirement savings in a tax-effective manner.
What Is the Work Test?
Generally, if you are aged between 67 and 74 and wish to claim a tax deduction for a personal super contribution, you may need to satisfy the work test.
To satisfy the work test, you must have been gainfully employed for at least 40 hours within a consecutive 30-day period during the financial year in which the contribution is made.
What Is the Work Test Exemption?
The Work Test Exemption allows eligible individuals aged 67 to 74 to make personal deductible super contributions for an additional financial year without satisfying the work test.
The exemption was introduced to provide greater flexibility for Australians transitioning into retirement and may assist those looking to boost their super after finishing work.
How Does the Work Test Exemption Work?
To be eligible for the Work Test Exemption, you must meet all of the following conditions:
- You must have a total superannuation balance at the end of the previous financial year of less than $300,000;
- You must have met the work test in the previous financial year (Been gainfully employed for at least 40 hours in a 30 consecutive day period); and
- Must not have used the Work Test Exemption in a previous financial year (The WTE is a once in a lifetime exemption).
If you satisfy these requirements, you may be able to make a personal deductible contribution in the following financial year, even if you no longer meet the work test.
How does the work test exemption apply in practice?
EXAMPLE 1 (Basic Work Test Exemption)
Sarah retired during the 2025/26 financial year after many years in the workforce.
During the 2025/26 financial year, she satisfied the work test by working more than 40 hours within a consecutive 30-day period. At 30 June 2026, Sarah’s Total Super Balance was $275,000.
In the 2026/27 financial year, Sarah receives an inheritance and would like to contribute part of it to her super while claiming a tax deduction.
Although Sarah is no longer working and does not satisfy the work test during the 2026/27 financial year, she may be eligible to use the Work Test Exemption because:
- She is between age 67 and 74
- Her Total Super Balance was less than $300,000 at the previous 30 June
- She satisfied the work test in the previous financial year
- She has not previously used the exemption
As a result, Sarah may be able to make a personal deductible contribution and continue building her retirement savings in a tax-effective environment.
What other opportunities does the WTE create?
The Work Test Exemption can create valuable planning opportunities for recent retirees.
For example, it may allow eligible individuals to:
- Make a final tax-deductible super contribution after retirement
- Take advantage of unused concessional contribution caps through the carry-forward contribution rules
- Contribute proceeds from an inheritance, asset sale or other windfall to super
- Further strengthen their retirement savings during the transition into retirement
When combined with other contribution strategies, the Work Test Exemption can play an important role in helping retirees maximise their superannuation benefits.
Need Help Understanding Your Eligibility?
The Work Test Exemption can be a valuable opportunity for recent retirees, but the eligibility requirements can be complex.
If you’re unsure whether you qualify or would like advice on how the exemption could fit into your broader retirement strategy, speak with the team at Yield for a complimentary discussion.
