Using Carry Forward Concessional Contributions

Concessional super contributions (also known as before-tax contributions) include employer super guarantee (SG), salary sacrifice amounts and personal tax-deductible contributions. Concessional contributions are presently subject to a limit of $30,000 per financial year, taxable to the super fund at 15%. Prior to July 2018, concessional contributions were subject to a ‘use it or lose it’ scenario. However, unused concessional cap allowances began accruing from 1 July 2018 under the catch-up rules. These rules allow super fund members to carry forward any unused concessional contributions on a rolling five-year basis.

End of Financial Year Checklist

The End of Financial Year (EOFY) is once again fast approaching – providing an opportunity to review your position ahead of the new year to come. Given the inevitable June end rush, as well as processing and cut-off times, we believe it prudent to consider important actions in advance of deadlines. The following is an outline of key planning strategies that may require review. However, this may not cover all EOFY planning requirements – please contact your adviser if you have a query as they can assist by way of facilitation with other advisers (such as your accountant).

Downsizer Contributions

Back in 2018 the government introduced the ‘Downsizer Contribution’ to enable home owners to contribute up to $300,000 into superannuation following the sale of their residence. This was originally subject to a minimum eligibility age of 65, however over time this condition has been reduced to age 55. Accordingly, given the opportunity available, according to recent statistics collected by the ATO, approximately $20 billion has now been contributed under these provisions over the previous 6 completed financial years.