Super deadlines loom at tax time
JUNE 30 is almost here – this means it’s time to think about superannuation dead lines.
First, keep in mind that a contribution must be received by the fund before midnight on June 30 for it to count for the current year.
If it is late it will count towards next year’s cap, and could possibly push you into excess benefits territory in that year.
The laws get a bit confusing here.
The boss has till 28 July to pay the compulsory super for staff for the current year, but it has to be in your fund by June 30 to count for contribution cap purposes.
If you are salary sacrificing heavily, make sure you talk to your employer to ensure the contributions are banked on time.
There are strict limits on contributions and penalties for exceeding them can be huge.
Concessional (deductible) contributions are limited to $25,000 but, as a temporary measure, have been raised to $50,000 if you are aged 50 or more.
These include contributions from all sources.
Non concessional contributions are capped at $150,000 a year but if you are under 65 you can bring forward three years and contribute $450,000 in one hit.
As always seek advice – superannuation can be a great tax saver.
Don’t let penalties for getting it wrong wipe out your tax benefits.
Noel Whittaker is a director of Whittaker Macnaught Pty Ltd. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. His email is firstname.lastname@example.org.