Financial Year End Planning
The financial year end is fast approaching! Provided you are under age 65 (or otherwise meet superannuation contribution eligibility rules) and haven’t already taken full advantage of your superannuation contribution caps, here’s a couple of superannuation related year end strategies you might be able to take advantage of.
Tax Deductible Superannuation Contributions
- If you are self-employed, you may be able to make a tax deductible superannuation contribution before the end of the financial year, referred to as a ‘personal concessional’ contribution.
- If you are aged 49 or over any time during the current financial year, your total concessional cap is $35,000 for 2016/17. If you are under this age, your total concessional cap is $30,000 this financial year.
- You can read more about the upcoming reductions to the above caps (and those for after tax, or ‘personal non-concessional’, contributions) in our Superannuation Contribution Changes from 1 July 2017 article.
- The Government Co-Contribution is a payment the Federal Government makes into your superannuation fund, provided you meet the following criteria:
- A minimum of 10% of your income must be from eligible employment, or carrying on a business, or a combination of both;
- You are under age 71 age the end of the current financial year;
- You are a permanent resident of Australia; and
- You have assessable income of less than $51,021 for the current financial year.
- Provided you meet the above criteria, an after tax (or personal non-concessional) superannuation contribution of $1,000 could result in a Government Co-Contribution of up to $500 being made to your superannuation fund following the completion of your personal tax return.
If you think you could benefit from the above strategies contact us on 03 5223 1219 to arrange a meeting to discuss your circumstances.