Now that the election is over, there is status quo in the existing superannuation laws.
Maximum concessional contributions (i.e. tax deductible ones) for 2019 are $25,000.
This is made up of:
- Employer contributions
- Salary Sacrifice contribution
- Personal contributions
In 2018, all individuals can contribute to super from personal funds and claim a tax deduction.
To ensure you get a tax deduction:
- You need to ensure your contributions clear your bank account before 30 June 2019
- Don’t forget that all your contributions must go through Superstream which can take up to a week to process so I recommend you process your reporting to Superstream no later than 20 June 2019
- You need to ensure your funds are received by your super fund prior to 30 June 2019. I recommend if possible to use BPAY as your payment method
- You then will receive a form/letter from the super fund (usually with the annual report paperwork) on which you advise the Superfund you intend to claim a tax deduction for your contribution. After you’ve posted/emailed the form back to the fund they will respond with an acknowledgment letter. You cannot claim a personal deduction to super without this letter.
NOTE: If you wish to make larger contributions to super over and above your $25,000 concessional limit, I recommend you contact me to discuss first.
This article appeared in our May 2019 newsletter. Author: Stephen Mason