Getting your contributions in before 30th June 2016
Posted by Northadvisory on June 28, 2016
If you’re wanting to make contributions into your SMSF you will need to act quickly to get these in before the 30th June 2016. This is important if you want to make the contributions by EFT as it may take a day for the contributions to hit your SMSF bank account. Under the current legislation, contributions are declared when they hit the SMSF bank account so if you do an EFT transfer on the 30th June 2016 and the contributions hit the SMSF bank account on the 1st July 2016 these contributions will count towards the 2016/2017 contribution caps and not the 2015/2016 caps.
The 2016 contributions caps are;
Concessional contributions (these are contributions that will be taxable in the super fund)
|INCOME YEAR||GENERAL CAP||CAP FOR THOSE AGED 50 YEARS OR OVER AT 30 JUNE|
From 1 July 2013, any excess concessional contributions may be refunded to a member and will be taxed at their marginal tax rates. Any refunded amounts will not count towards the non-concessional cap.
Non-concessional contributions (these are contributions that are not taxable in the super fund)
|INCOME YEAR||AMOUNT OF ANNUAL CAP|
Individuals under the age of 65 may have access to the bring forward rule.
Impact of contributions from the 2016 Federal Budget
The Government has announced it will cut the annual concessional contribution cap to $25,000 per year for all individuals up to the age of 75 from the 1st July 2017.
From budget night the government has announced that the non-concessional contribution cap will be a lifetime limit of $500,000. This includes all non-concessional contributions made from the 1st July 2007.
These proposed changes are not yet legislated but we strongly urge you to discuss your contributions caps with us if you’re not sure what you can and can’t contribute.
If you have any questions relating to your contributions please contact;
Martin van der Saag
T: 02 9984 7774
SMSF Specialist Advisor
T: 02 9984 7774
Read more Superannuation articles.