With 30 June fast approaching, now is the time to consider making the most of opportunities for your super. In addition to topping up your retirement nest egg, you will also benefit from some generous tax breaks.
- Maximising your super contributions
- Claiming a tax deduction for personal contributions
- Splitting contributions with your spouse
- Triggering the 3 year non-concessional cap before turning 65
- Performing a “lost” super search and consolidating your super accounts
- Utilising the government co-contribution
- Low income spouse contribution and tax offset.
Maximise your super contributions
From 1 July 2017, the concessional contributions cap (non tax deductible) is $100,000 for members 65 or over but under 75. Reminder: If aged 65 and over you must meet the work test to contribute to super. That is, if contributing after turning 65, you must be gainfully employed for at least 40 hours in 30 consecutive days in the financial year the contribution is made and before the contribution is made.
Members under 65 years of age will have the option of contributing up to $300,000 over a three-year period - depending on their total superannuation balance (see below)
The contribution and bring-forward available to members under 65 is outlined in the following table:
Total Superannuation Balance
Contribution and bring-forward available
Less than $1.4 million
Access to $300,000 cap (over 3 years)
Greater than or equal to $1.4 million and less than $1.5 million
Access to $200,000 cap (over 2 years)
Greater than or equal to $1.5 million and less than $1.6 million
Access to $100,000 cap (No bring-forward period, general non-concessional contributions cap applies)
Greater than or equal to $1.6 million
Concessional contributions (tax deductible) are subject to a yearly cap of $25,000 for all individuals regardless of age (note: this cap includes employer contributions and salary sacrifice contributions).
Claim a deduction for personal super contributions
This is the first year where both self-employed people and employees will be able to claim a tax deduction for super contributions.
However, if you intend claiming a deduction for personal super contributions, you must lodge a deduction notice, in the approved form, with the fund before the earlier of:
- The day you lodge your tax return for the year in which the contribution was made, or
- The end of the financial year after the financial year in which the contribution was made.
If you would like more information on the strategies identified above, please contact your adviser.
General Advice Warning
The information provided in this article is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Before making any decision, it is important for you to seek appropriate legal, tax, and other professional advice.