5 Dec 2018
Personal Super Contributions
Obtaining a tax deduction for making a contribution to your super used to be solely the domain of the self-employed, with fairly rigorous criteria around eligibility. The criteria for making these tax efficient contributions to super has now been simplified, making it easier for those under 65, and those between 65 and 75 who meet the work test, to contribute to super and claim a tax deduction up to the concessional cap threshold (currently $25,000 per year).
Providing a person has not reached the cap they can make personal contributions to their super each financial year and provide the super fund with a nomination as to the amount of those funds they want to claim as a tax deduction. They can then claim a tax deduction in their tax return. This means that those who have an employer that doesn’t allow salary sacrifice, or those on variable incomes who want to top up to the concessional cap but don’t want to risk a penalty for going over it, have more options.
There are a few criteria that need to be met and timing of contributions and nomination forms is important, particularly if you have insurance rollovers or plans to change super fund. As such it is important to seek advice from a trusted financial adviser to ensure a contributions strategy is the best option for you and your family, as the best advice is advice tailored to you. If you would like to discuss please do not hesitate to contact me.
Information by Louise Laing, Financial Planner and Partner at PSK Financial Services.
Louise lives in Cammeray NSW with her husband, Andy, and their two young boys Angus and Finlay. Since moving to Australia 15 years ago from the UK, she’s become addicted to ocean swimming and heads out regularly with the Bold and Beautiful Swim Squad in Manly. Louise uses her experience in dealing with the daily joys and challenges of balancing family, work and enjoyment of the Sydney lifestyle to help her provide individuals and families with the clarity that they need to meet their financial and lifestyle goals. She specialises in providing high quality, unbiased financial advice, across a wide range of areas; including family protection, budgeting, wealth creation, investment management, all aspects of superannuation including SMSF, and pre and post retirement planning