Changes to the superannuation regulations take effect on 1 July this year. Before they do, you can make the most of the current rules by making larger contributions.
Superannuation opportunities before June 30, 2017
After-tax superannuation contribution
You can contribute $80,000 more in after-tax super contributions now than will be possible from 1 July, when the after-tax contributions cap reduces from $180,000 to $100,000 per year. If you’re under 65, you can maximise this by bringing forward three years’ worth of after-tax super contributions to a maximum of $540,000, significantly higher than the $300,000 limit that will apply from 1 July.
If the total balance of your super accumulation and income streams is over $1.6 million, you won’t be able to make any after-tax contributions in the new financial year.
Before-tax superannuation contribution
You can contribute $5,000 or $10,000 more in before-tax contributions now than you can in the new financial year. The before-tax (concessional) contributions cap will decrease from $30,000 (or $35,000 if you’re 50 or older before July 1) to $25,000 per year for everyone, irrespective of age.
Things to keep in mind
Any contributions over and above the caps may be liable for extra tax. Once your funds are invested in super, you need to meet a condition of release such as retirement, to get access to the funds. The value of your investment in super can go up and down. Before making extra contributions to your super, make sure you understand and are comfortable with any risks associated with your chosen investment option.
Speak to us before the 30 June 2017 deadline to find out how these super changes might affect you and how you can maximise your investment before it’s too late.
Contact email@example.com or call our office on 9383 8300 to find out more.