It is fast approaching the 30th of June so now is the time to run through a checklist of what you need to do prior to the end of the financial year.
Contributions – Getting money into your Fund (Check your timing!)
You need to ensure that any contributions are received by your fund on or before 30 June for them to be counted for the 2016/2017 year.
If you are making contributions by electronic funds transfer (EFT) some transactions may not be received by your find until the next business day.
With 30th June being a Friday this year we recommend making any transactions by Tuesday 27th June.*
For the 2016/2017 financial year concessional contributions are:
$35,000 – if you are 50 or over
$30,000 – if you are under 50
These can be made by your employer or yourself (if self-employed). For those salary sacrificing, please consider any potential end of financial year bonuses that may result in additional contributions being made.
Claiming a Tax Deduction if you are Self Employed
You may be able to claim a tax deduction on any personal contributions made to a superannuation fund. If you are eligible and intend to claim a tax deduction you will need to lodge a “Notice of Intention to Claim a Tax Deduction” with your fund before you lodge your personal income tax return.
Your fund trustee must then provide you wit an acknowledgement of your intention. The amount claimed as a deduction will then change the character of your original non-concessional contribution into a concessional contribution.
Remember that the maximum deduction claimable is limited to your assessable income. Hence, you may not be able to claim the maximum concessional contribution limit of $30,000 or $35,000.
We strongly suggest you liaise with your personal or business tax accountant and seek their advice around eligibility of claiming a deduction for super contributions as well as how much you should claim.
Personal after tax non-concessional contributions are an excellent way to build your wealth by moving more of your assets into the tax effective environment of super. The annual amount you can contribution is $180,000
It is essential you double-check the amounts available under your contribution cap before making any contribution.
You can check any of the above by contact us on 07 3883 8999 so a tax professional and/or financial Planner can review your options with you.
*Date corrected to Tuesday 27th June