Getting your contributions in before 30th June 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 |
| 2015-16 | $30,000 | $35,000 |
| 2016-17 | $30,000 | $35,000 |
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 |
| 2015-16 | $180,000 |
| 2016-17 | $180,000 |
Individuals under the age of 65 may have access to the bring forward rule.
“End-of-financial-year super contributions can reduce tax today while strengthening your retirement tomorrow.”
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
Director
T: 02 9984 7774
E: martinv@nac.com.au
Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Timing Is Critical
Contributions must clear into your super fund before 30 June — leaving it late can mean missing out on benefits.
Super Can Be a Tax-Effective Strategy
EOFY contributions may reduce tax while boosting long-term retirement savings.
Contribution Caps Must Be Managed Carefully
Understanding your available caps helps avoid excess contribution penalties.
Driven by our values
Effortless and Seamless
On-Boarding Process
Intuitive and Knowledgeable
Direct Expert
Access
Useful and Articulate
Financial
Reporting
Forward
Thinking
Compliance Solutions
Streamlined
Tech
Integrated and Automated
Frequently Asked Questions
Why is 30 June an important date for super contributions?
Super contributions must be received by your super fund before 30 June to be counted in that financial year and potentially deliver tax benefits.
What types of contributions can be made before 30 June?
You may be able to make concessional contributions (such as salary sacrifice or personal deductible contributions) and non-concessional contributions, subject to eligibility and caps.
Can making extra super contributions reduce my tax?
Yes. Concessional contributions may reduce your taxable income and are generally taxed at a lower rate inside super.
Are there limits on how much I can contribute?
Yes. Contribution caps apply, and exceeding them can result in additional tax, so it’s important to understand your limits before contributing.
Should I get advice before making EOFY super contributions?
Yes. EOFY strategies can affect tax, cash flow and future contribution options, making professional advice valuable.
When does my super contribution actually count — when I pay it or when the fund receives it?
A contribution only counts when the super fund receives the money, not when you initiate the transfer. This timing is critical close to 30 June.
North Advisory’s Reviews 
On 
Flo Mitchell
4 weeks ago
Changed to this company in 2019 from former accountant and love their approach of organizing everything for me face to face with Xero set up plus being able to call as much as I need for set annual fee. They also picked up on something that was not done correctly by my former accountant and saved me $4k for this.
Timothy Cummins
A month ago
They the truly the best, Martin and Judy are so experienced, knowledgeable & professonal, also quite like speaking with Rose : ) all people are so lovely!
Michael Iera
2 months ago
Positive, Responsiveness, Quality, Professionalism, Value
Michael Iera
2 months ago
Excellent company in regards to service and professionalism. Very experienced in dealing with complex matters. Highly recommended.
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia