The good news!
Thanks to a change in legislation, most working Australian’s can now claim a tax deduction for personal contributions to superannuation. This is really exciting for employed individuals as previously you could only add to super via employer contributions or salary sacrificed amounts.
What are the details of the limits for these contributions?
To give you a heads up, the concessional (tax-deductible) contributions cap is $25,000 for the year. Concessional contributions include the super from your employer, your salary sacrificed contributions and any other contributions where you’ve claimed a tax deduction. We think this is a great way to get more dollars accumulating in a tax efficient environment.
The final date that superannuation funds will accept funds to ensure they are attributed to this financial year vary from fund to fund. To give yourself peace of mind we are recommending you plan to have contributions to your fund by mid-June. In fact, we encourage you to contact us within the next 2 weeks to discuss the best strategy for you.
As you may be aware, a lot of this information is complex, including contribution caps (with extra tax payable if you exceed them) and specific notice of intent forms that are required to be completed as part of this process.
What else is important
Whilst we have you, it’s also an opportune time to review your position, including your investments, insurances and your goals for next financial year.
As your trusted adviser, we don’t want to you to worry about the details, we are here to provide you with appropriate advice and if you have any questions please do not hesitate to get in touch with us to ensure you are making the most of the relevant strategies available.