Superannuation contributions can be divided into two types — concessional (before-tax) and non-concessional (after-tax). Each type of super contribution is subject to a contributions cap. A contributions cap sets a limit on the amount of contributions you can make in any one year.
For the 2013/2014 year, there are 2 concessional contributions caps you need to be aware of when considering contribution strategies, namely:
- $25,000 cap for anyone aged 59 or under
- $35,000 cap for anyone aged 60 years or over
A reminder that if you made a personal super contribution in 2013/14 that you intend to claim as a tax deduction, you will need to:
- lodge a valid ‘notice of intent’ with their super fund, and
- receive an acknowledgement from the fund trustee.
If the notice hasn’t been lodged already, it must be supplied by the earlier of:
- the date their tax return is lodged for the year the contribution was made, or
- the end of the financial year following the financial year in which the contribution was made.
Transition to Retirement
Under the transition to retirement rules, if you have reached your preservation age, you may now be able to reduce your working hours without reducing your income. You can do this by topping up your part-time income with a regular ‘income stream’ from your super savings.
Please contact us for a review so ensure you have the appropriate superannuation contribution and TTR strategies in place.