Super Contributions by 30 June 2018
As from 1 July 2017 the maximum concessional superannuation contribution limit is $25,000 for all individuals, regardless of their age. This includes employer super guarantee and employee salary sacrifice contributions.
Where contributions exceeds these amounts, the excess is taxed at your marginal tax rate, less a 15% tax offset for the tax already paid by the super fund.
Where contributions are currently less than $25,000 and your taxable income will be less than $51,813 for the 2017/2018 year, it’s worth considering the current co-contribution scheme in which the government will match additional (after-tax) contributions up to $500.
If you are self-employed and making a personal superannuation contribution, ensure you obtain the substantiating paperwork from your superannuation fund before lodging your tax return.
To obtain a deduction in the 2018 financial year, the contribution must be received by the super fund by 30 June 2018, so processing time needs to be factored into last minute payments made by cheque or EFT.
Where the contribution is by EFT, payment is taken to be made when it is credited to the bank account of the fund, not when the transfer is made. For this reason we recommend making the payment by 25 June at the latest, if you wish to claim it as a deduction in the 2017/2018 financial year.
Where the super contribution is made by cheque and the fund receives it by 30 June, the deduction is allowed as long as the trustee banks the cheque within three business days and it doesn’t bounce. If the payment is not deemed to have reached the super fund account by 30 June, the tax deduction will be deferred until the next financial year.
The Money Edge team is always happy to assist with your superannuation queries. You can also chat to your super fund for more specific information.
The Money Edge | Bundaberg