time for taxes

Super contributions before June 30

With June now here we thought one more update is in order before the financial year comes to a close.

For employees…

This is the first tax year that you can top up your deductible super contributions before June 30 by making a lump sum contribution. So as an example, if your employer has paid $10,000 for the full 17/18 tax year gross before tax to super you can add another $15,000 and claim a tax deduction on it. Remember, the most you can contribute to super is $25,000 from all sources, this includes if you are paying any insurances through a superannuation linked policy.

You also need to ensure that there is a benefit in contributing to super. It may be that there is not a benefit and so to avoid paying too much tax make sure you discuss with your adviser before topping
up your contributions.

Remember, that’s a maximum of $25,000 from all sources that you can contribute to super to claim a deduction.

For Business owners…

Your next super guarantee (SG) payments for the quarter 1 April – 30 June are due by 28 July 2018.

Non Concessional Contribution Caps

From 1 July 2017, the non-concessional contributions cap is reduced to $100,000.  For members 65 or over but under 75 you still need to satisfy the work test in order to be eligible to make a contribution.
Members under 65 years of age will have the option of contributing up to $300,000 (provided they have not used any of their go -forward option in the last three years).

The other consideration is in relation to your transfer balance cap which only allows you to have up to $1.6m  or less in super as your member balance so this may affect how much you can contribute.

If you are considering doing this, the legislation is a bit tricky, so talk to your adviser before doing anything to ensure that you do not break any of the rules.