Do you make voluntary superannuation contributions?
From 1 July 2017, you are eligible to make personal concessional (tax-deductible) contributions under Superannuation Reform.
What’s exciting about this?
You will have the flexibility to make concessional contributions either via salary sacrifice or personal tax-deductible contributions.
What are the benefits?
This flexibility could assist amongst other reasons with:
- end of year superannuation top ups by making personal concessional contributions
- to use up any remaining concessional contribution cap
- deciding how to contribute bonuses, annual leave and long service leave.
What do you need to know?
If you want to claim a tax deduction for personal superannuation contributions, there are conditions to be met which include but are not limited to the following:
- You must have made the contributions to a complying superannuation fund or a retirement savings account that is not:
- A Commonwealth public sector superannuation scheme in which you have a defined benefit interest
- A constitutionally protected fund (CPF) or other untaxed fund that would not include your contribution in its assessable income
- A superannuation fund that notified the ATO before the start of the income year that they elected to either treat all member contributions to
- The super fund as a non-deductible, or
- The defined benefit interest within the fund as non-deductible.
- You must meet the age restrictions (including satisfying the work test for those aged 65 to 74)
- You must notify your fund in writing of the amount you intend to claim as a tax deduction within the required timeframe and using the ATO approved form
- Your fund must acknowledge your notice of intent to claim a deduction in writing
Do you need advice?
Contact The Money Edge Team on 07 4151 8898 to arrange an appointment if you would like tailored advice.