Were you aware:
- Your annual Concessional Contribution (CC) cap for 20/21 is $25,000;
- Considering the above figure however, since 2018, individuals can carry forward any unused CC cap for up to 5 financial years (rolling 5 year periods). For instance, if you were able to contribute $25,000 in 2019/2020, but only put in $10,000 then you have $15,000 that can be contributed from this financial year, and/or the next 4 financial years. This is in addition to the annual limit for this financial year (*Note, total Super balance must be < $500,000 at 30/6 of prior Financial year to take advantage);
- If the following applies: 1. Your annual income is below $54,837, 2. You are under 71, and 3. You have less than $1.6 Million in Super, you may qualify for the Government Co-Contribution. We won’t go into all the calculations associated with this, but for example, if you earned say $38,000 this year and made a contribution of say $1,000 than the Australian Government would partially match your funds with a $500 Co-contribution.
- For those with income below $37,000 you may also qualify for the low income super tax offset. The offset is the lesser of $15% of the eligible cont. and $500.
- Non- Concessional contributions are after-tax in nature, andcan allow you to ramp up your Superannuation quicker in the event of say an inheritance, or work bonus for instance. These can also be used for Spouse contributions. Essentially the figure is 4 x the above Concessional Cap of $25,000 = $100,000. This is provided your total Super balance is under $1.6 Million at 30/6/2020. Without going into all of the eligibility requirements, you may also qualify to be able to bring forward these contributions and make a contribution of $300,000 maximum bring forward amount. These contributions are not taxed, and utilising the full $300,000 bring forward means that in the subsequent 2 financial years you are not eligible to make further Non-Concessional contributions for yourself.
- Since July 2018, individuals over the age of 65 have been able to utilise the sale proceeds of their homes to contribute to Super. This is known as the Downsizer contribution. Contributions must be made within 90 days of settlement on the sold property. Again, there are qualifying & limiting factors that we can assist you with, however this may allow you to make up to a $300,000 (maximum lifetime) contribution to Super, in the event you are selling your home.
We are well placed to assist with these and other Superannuation or wealth creation strategies. Super can be a minefield, and our University Educated advisers can assist you to decipher what strategy is best suited to your unique situation. Please give us a call on 07 33789681 to discuss or alternatively get in touch with us at email@example.com to make a free initial, non-obligatory consultation.