With the end of financial year just around the corner, we wanted to remind you of the cut off dates for making contributions to super, should you intend to do so.
As always, we encourage you to contact our office to discuss the applicable contribution caps, eligibility for making contributions and the associated tax benefits/consequences, before making any contributions.
You can contribute to super in a number of ways.
- Salary sacrifice (before-tax) contributions through your employer.
- Personal deductible contributions.
- Personal after-tax contributions.
Making additional contributions could have potential tax benefits, depending on your circumstances. Find out more by contacting our office.
Direct Debit: If you intend on making contributions via direct debit we encourage that this be done no later than Friday 22nd June.
EFT or BPAY: If you intend on making contributions via EFT or BPAY we encourage these contributions be made no later than Tuesday 26th June.
Cheque: If you are paying by cheque, please allow for postage as the contributions will only be processed on the date they are received by the superannuation fund. They will not backdate the contributions to the date on the cheque.
By following the above guide, you will ensure any contributions you make will be processed and applied to your superannuation account prior to the end of this financial year.
Things to think about
We encourage you to consider your personal circumstances before contributing any funds into the superannuation environment, as any money contributed will be subject to investment return risk, and can generally only be accessed when you retire or meet a condition of release.
In addition, there are caps on how much you can contribute to your super each financial year*. If you exceed these caps, additional tax and penalties may apply. Any contributions made from your before-tax income will be taxed 15% when the money reaches your super fund#.
We’re here to help
If you have questions about your super or making further contributions, please feel free to contact us. Our phone number is 08 8373 6420 or alternatively send us an email us at email@example.com
The Leedam Sheppard Advisory Team
What you need to know
* $25,000 before-tax (for the 2017-2018 financial year). This includes salary sacrifice and compulsory employer contributions, as well as personal contributions which you claim as a tax deduction in your tax return. Or $100,000 for after-tax contributions (for the 2017-2018 financial year). If you’re under age 65, you may be eligible to bring forward up to 3 years’ worth of after-tax contributions (i.e. up to $300,000). However, if your total superannuation balance at 30 June of the previous year was $1.6 million or more, your after-tax contribution limit will be reduced to zero. Please refer to the ATO website at www.ato.gov.au for eligibility and full details.
# If you earn $250,000 or above pa, inclusive of super, you will also be subject to division 293 tax, which could mean an additional 15% tax on some or all of your before-tax contributions.
This email contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
Leedam Sheppard & Associates Pty Ltd (ABN 89 097 681 322), is an authorised representative of Hillross Financial Services Limited, Australian Financial Services Licensee and Australian Credit Licensee (Licence No 232705).