As we are only days away from the end of the financial year, so this is your last chance to make your Super contributions at the current caps, if that is your intention.
For the 2016/2017 year: There are 2 annual concessional contributions caps, namely:
$30,000 cap for anyone aged 48 or under as at 30 June 2016.
- $35,000 cap for anyone aged 49 years or over as at 30 June 2016.
For the 2017/2018 year: The annual concessional contributions cap is reduced to $25,000, and you need to be aware of this lower cap (compared with the higher caps applicable for the 2016/2017 year) when considering before-tax contributions strategies. The cap applies to all age groups, which means there is NOT a special higher cap for older Australians.
Taking effect from 1 July 2017, the annual non-concessional contributions cap is $100,000, and the 3-year bring-forward cap is $300,000. For the 2016/2017 year, the annual after-tax contributions cap is $180,000, and the 3-year bring-forward cap is $540,000.
If an individual intends to claim a tax deduction for personal super contributions (treated as concessional contributions) in their tax return, they will need to lodge the appropriate form with their super fund. If you are planning to make tax-deductible super contributions, ensure you verify your position with an accountant or the ATO. Note that the 10% rule will no longer apply from 1 July 2017.
For any clarification or urgent advice, call our SMSF specialist Tes on 08 9267 3800.