I am self-employed, low-income earner in my late 40s and have under $200,000 in super. Our house is in my wife’s name and we have zero debt. I am about to receive an inheritance from the UK of about $350,000.

Due to numerous pressures, I’ve only been contributing about $5,000 a year to my super for the last five years. I’m thinking about using catch up provisions to get $100,000 into my super. Could you shed any light on the pros and cons of this or a better way to top up my super?

There are two ways to contribute extra money to your superannuation, and each have their own pros and cons.Credit: Simon Letch

There are two types of superannuation contributions. The first are called concessional contributions for which you can claim a tax deduction and the second are non-concessional contributions which come from after tax dollars.

As you are on a low income, it would seem to me to be pointless to be making tax-deductible contributions – you are better off to save the catch-up concessional contributions to a time when you have a higher income.

Provided you are happy to lose access to the funds until age 60, I suggest the best strategy would be to make non-concessional contribution for $100,000 from the inheritance. There is no entry tax on non-concessional contributions.

I read everywhere that you can make a tax-deductible super contribution of up to $27,500 before you are 67 without meeting the work test. I turn 67 in mid-June this year and intended to make a contribution while I am 66. However, I’ve just read a random website that suggests I must meet the work test if I want to claim a deduction for the financial year in which I turn 67 even though I will be 66 when I make the contribution. The Australian Tax Office website info on this issue does not clarify the position. Do you know?

This is a common question, and the tax office website is a bit ambiguous. John Perri of AMP Technical tells me it all comes down to when the contribution is made. If it is made before turning age 67 in a financial year, then the work test does not have to be met to claim the tax deduction.

However, if the contribution is made after the person turns 67 in a financial year, then the tax deduction can only be claimed if the work test is then met.