Financial Advice is a must when dealing with changes to Super contributions.
Changes from 1 July 2017 affect how much you can contribute to your superannuation account without exceeding the contribution caps, as well as the tax payable on certain contributions. Financial Advice is a must before proceeding.
We’d like to help you make the most of your super changes, by helping you understand what is changing keep retirement savings on track.
Speak with Craig Jackson at HQB Financial Solutions here for great Financial advice.
From 1 July 2018, you will be able to carry forward any unused before-tax (concessional) contribution cap amounts, if your total super balance is less than $500,000.
Total super balance includes all monies you have in the accumulation and retirement phase of super, less any structured settlement amounts. You must also be under 65 at any time in the financial year in which the contributions are made.
Amounts ‘carried forward’ which have not been used after five years will expire. The 2019-20 financial year is the first year you will be able to use any unused concessional contribution cap amounts.
Here’s an example of how this carry forward rule works: As at 30 June 2019, Bob has a total super balance of $150,000 and made concessional contributions of $20,000 in the 2018-2019 financial year. This means that, in the 2019-2020 financial year, Bob can make concessional contributions of $30,000 (concessional contributions up to the cap of $25,000 plus $5,000 of his unused 2018-2019 cap).
Maximise your superannuation contribution opportunities
The super changes may provide increased opportunities for you to boost your retirement savings!
Claim a tax deduction for personal super contributions All individuals may be eligible to claim a tax deduction for personal contributions. Remember, a personal contribution that you claim a tax deduction for is a concessional contribution and is taxed at 15%. It also counts towards your concessional cap. You can make personal super contributions if you’re aged 65 and under, or if you’re 65 or over and meet the work test (working at least 40 hours over 30 consecutive days in the financial year the contribution is being made).
Continue to the full article Changes to the superannuation caps