With less than 7 weeks left to take advantage of topping up your super balances before the new, more restrictive superannuation regime comes into force on 1 July 2017 now is the time to seek advice to take advantage of the current superannuation concessions, as well as prepare for the new changes that commence on 1 July 2017.
So what to do prior to 30 June 2017?
- Maximise super contributions
Ensure you have maximised your annual concessional (tax deductible) and non-concessional (undeducted or after-tax) super contributions. The following tables summarise the contribution caps for the current financial year as well as the contribution caps applicable after 1 July 2017:
|50 to 74||$35,000||$25,000|
- This cap is inclusive of any 9.5% compulsory employer contributions made on your behalf.
- If you turn age 50 at any time during the 2016-17 year you are eligible for the higher cap of $35,000 for the 2016-17 year.
- Those earning more than $300,000 (or $250,000 after 1 July 2017) will pay an additional 15% contributions tax on their concessional contributions.
- If you are over age 75, only mandated or compulsory super guarantee contributions are permitted.
|65 to 74||$180,000||$100,000|
- For those under age 65, the non-concessional contribution caps listed are based on the annual non-concessional cap (i.e. $180,000 for 2016/17 and $100,000 for 2017/18) brought forward over 3 years and would only be applicable for those people that have not exceeded their annual non-concessional contribution cap in the prior 2 financial years.
- If you are age 65 and over, you need to satisfy a work test of gainful (paid) employment of at least 40 hours in a consecutive 30 day period during the financial year in order to be eligible to contribute to superannuation.
- If you are over age 75, non-concessional contributions are not permitted.
*** For further information regarding Superannuation and before taking any action please contact your Advisor.