The financial year end is almost here. To maximise super contributions you will need to act quickly as processing cut off times are generally before June 25. The ATO Small Business Super Clearing House deadline is 5pm June 24.
The limit is $25,000 and this includes employer contributions and salary sacrifice. You can also make a personal member contribution up to $25,000 and claim a tax deduction (note this includes your employer contributions and salary sacrifice so make sure you don’t go over this cap or penalties apply).
Non Concessional Contributions:
If you have less than $1.4m in super you may be eligible to contribute up to $100,000 to super each year. Prior to turning 65 you can also utilise the Bring Forward Rule and contribute up to $300K in one hit (rules and eligibility apply so please check with us).
Government Co Contribution:
If your income is less than $37,697 then you may be eligible for the co contribution. Contribute $1000 to super and the government will match $0.50 for every $1 contributed with a sliding scale cutting out once you earn $52,697.
If your spouse earns $37,000 or less and you contribute $3,000 as a spouse contribution you may be eligible for $540 tax offset.
Subject to your super funds rules, you can split up to 85% of your concessional contributions to your spouse. This strategy is helpful to even out balances (especially with the $1.6m total super balance) or to fund a spouses insurance benefits.
Ensure you have taken the minimum pension payment this financial year.
If you wish to maintain insurance is some of your small super accounts make sure you respond to your fund’s request to elect to keep your insurance before June 30 or it could be cancelled.
If you personally own your income protection policy premiums paid are tax deductible.
You may be able to claim a tax deduction for up to 12 months of prepaid interest expenses, including interest paid in advance on an investment loan.
This information contained in this document has been provided as general advice only. The contents of this document have been prepared without taking account of your personal objectives, financial situation or needs. You should, before making any decision regarding any information, strategies or products mentioned in this document, consult with your GPS Wealth Ltd financial adviser to consider whether it is appropriate having regard to your own objectives, financial situation and needs.