Tom HackettWith 30 June fast approaching, it is imperative you determine whether making additional concessional superannuation contributions makes good financial sense.
Remember that a $25,000 limit applies to all concessional contributions – both those made by an employer and those you make personally.
Concessional contributions are normally thought of as salary-sacrifice and superannuation guarantee contributions. They are called “concessional” because if an employer pays this money as superannuation rather than salary, there is less tax taken out – superannuation funds pay tax at lower (concessional) rates than these individuals pay on their salary.
Other than making the right decision to top-up (or not), the next most important thing is to ensure the funds are deposited in your superfund at least five (5) working days before 30 June 2020.
In summary:
Assess the merits of increasing your concessional contributions for 19/20 (remembering it can’t be > $25,000 for the year)
Access your super online or call your superfund to find out how much you have contributed to date (i.e. from 1 July 2019)
Add to this balance any contributions you’ve made that haven’t been deposited in your superfund yet (you don’t want to go over $25,000)
If you want to increase your concessional contribution, we recommend you do this bank transfer no later than 22 June 2020 so it will land in the fund’s bank account by 30 June 2020.
If you have any questions, please contact our knowledgeable wealth and accounting advisors.