It’s a new financial year, so it is time to understand the superannuation contributions for self-managed superannuation funds.
The concessional contributions (CC) include:
- Compulsory employer contributions
- Salary sacrifice contributions
- Personal tax deductible contributions
For persons aged under and over 50 years, the CC is $25,000.
The non-concessional contributions (NCC) for this financial year, include:
- Personal after tax contributions
- Spouse contributions
- Contributions which exceeded your concessional gap
For persons aged under 75 years, the NCC is $100,000. Taxpayers with a total super balance over $1.6m will not be able to make NCC.
NCC cap exemptions include:
- Proceeds from settlement of personal injury
- Government co-contribution payments
- Rollovers from taxed superannuation funds
- Proceeds from sale of small business CGT assets up to cap limit (i.e. $1.565m)
- Downsizer contributions up to lifetime $300,000 limit.
Members can claim the maximum tax offset of $540 when their spouse's income is $37,000 or less. This amount reduces if the spouse's income is over $37,000 up to the amount of $40,000. Spousal income includes, assessable income, total reportable fringe benefits and reportable employer super contributions.
If a spouse exceeds its NCC for the year, or has a total super balance of greater than $1.6m, then there will be no tax offsets available.
Members can split up to 85% of their CC each year with their spouse providing the spouse is less than 65 years, not retired, and the application is lodged within a specific time frame.
It is crucial to speak with a financial planner or adviser about any contributions and to inform your solicitor of your superannuation arrangements in any estate planning context or review.