12 Jun 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.
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.
This website contains general advice which does not consider your particular circumstances. You should seek advice from Wealth & Retirement Solutions who can consider if the general advice is right for you. You should also consider the Product Disclosure Statement before making any investment or product decisions. This website contains past performance information. Past performance is not always a reliable indicator of future performance and you should not rely solely on it to make investment decisions.