The end of financial year coming to a close.
If you are looking to make a top-up contribution into your Superannuation for this financial year, please make sure that your contribution is processed no later than Friday, the 25th June 2016. Don’t leave extra super contributions to the last minute. The ATO generally takes the view that the super fund needs to receive the contribution by 30 June in order for it to be considered a contribution for this year. Making a contribution by electronic transfer on 30 June may result in it being received by the fund in early July.
- As an individual, you may contribute up to $30,000 per annum if you were 48 or under on 30th June of the previous year, or up to $35,000 if you were 49 or over on 30th June of the previous year. Please advise if you are going to be making a concessional contribution into your account so that we can send you the relevant Notice of Intent to claim a tax deduction in July. Despite the Budget proposals to reduce the concessional contributions caps to $25,000 per annum – there is no guarantee that the planned changes will pass through parliament – the current concessional contributions caps still apply for this year — $30,000 for those under 50 and $35,000 for those 50 years and older.
- Salary sacrifice can only be organised in advance, so now may be the time to set this up for next financial year, however, you should always talk to your financial adviser to receive advice that takes into account your personal situation.
- If you are looking at making non-concessional contributions, please note the rules surrounding these contribution types changed on the 3rd May 2016. A lifetime cap of $500,000 for non-concessional contributions has replaced the existing annual cap of $180,000 (or $540,000 every three years under the bring-forward rule). The lifetime cap takes into account all non-concessional contributions made from 1 July 2007. Contributions made from 7.30pm AEST on 3 May 2016 that exceed the cap (taking into account all previous non-concessional contributions) will need to be removed or will be subject to the current penalty tax arrangements.
If you are uncertain as to how much you have contributed under these rules in the past, or how these changes may impact you, we strongly encourage you to contact our office.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.
Why not follow, like or link in with us on social media?
You can find all the latest news and posts from Complete Financial Balance, ask us a question, send us your comments and more by following the links below.