If you plan to get more into your super this financial year, act very quickly.
If you’re aiming to make a personal superannuation contribution before the end of the current financial year, your actual lodgement deadline is probably just over one week away from now.
That’s because super funds generally have a lodgement deadline that’s about one full business week before 30 June so they have sufficient time to process contributions made into members’ super fund accounts.
Personal contributions, including standard concessional contributions (before-tax), carry forward concessional contributions, and non-concessional contributions (after-tax), that are lodged too close to 30 June run the risk of being carried over into the next financial year.
Self managed super fund (SMSF) trustees typically don’t have this problem, because in most cases their personal super contributions simply involve making an online intrabank transfer from their non-super account to their SMSF’s account.
However, if cash transfers are being made from one financial institution to another, it’s also important for SMSF trustees to allow sufficient time for interbank processing.
Therefore, if you’re intending to make a personal contribution into your SMSF this financial year (30 June falls on a Sunday), any contributions must clear into your fund’s account by Friday 28 June.
What you could do before your super fund’s processing cut-off date (or by Friday 28 June)
- Make a concessional contribution: If you’re below the current annual $27,500 concessional contributions limit, you could take the opportunity to transfer some more money into your account to take advantage of the lower 15% tax rate that’s charged on super contributions.
- Make a carry forward (catch-up) concessional contribution: If you haven’t used up all your annual concessional contributions limits over the past five financial years, subject to meeting certain conditions, you may be able to add more than $27,500 (the current concessional contributions limit) into your fund.
- Make a non-concessional contribution: If you have some after-tax money available, perhaps from the sale of another asset, you could consider adding this into your super fund account. The current annual non-concessional contributions limit is $110,000.
We can help you to maximize your wealth and manage your finances accordingly. Our team is here. Call us at 08 8231 4709 or you can also reach us at info@centrawealth.com.au.
Article courtesy of Vanguard.
