Plan your super contributions for the 2017 financial year.

money-notes

Concessional Contribution Cap (Employer and Personal Deductions)

2016 – 2017       <49 years: $30,000            49 + years: $35,000

If you exceed the concessional contribution cap for the year, the excess is included as taxable income, taxed at the marginal tax rate with an excess concessional contributions charge.  After your return is lodged you will then be issued with an amended tax return notice with the excess charge included.

To be sure you don’t exceed the cap Business Initiatives recommends planning your contributions for the year now.

It’s as simple as sitting down with your employer to calculate your projected super contributions if you have a salary sacrifice arrangement or simply contact us 08 8431 7444 or email kimberley.ross@superi.com.au

Superannuation Budget Update

The budget is fast approaching and although the Liberals have remained tight lipped on their proposals a few possible changes have slipped through the cracks. With the release date being brought forward to 3 May 2016, Super Initiatives urges clients to take action beforehand.

 

 Possible Changes:

  • Contribution caps may be reduced
  • Tax on concessional contributions for high income earners may increase (currently 30% for those with Taxable Income over $300,000)
  • Transition to retirement rule changes making people reduce their working hours to receive a TTR
  • Tax on earnings above a threshold when in pension phase

3 Months
To ensure you are maximising your super fund’s tax saving potential remember to:

  • Make all contributions before 30 June 2016 (preferably before budget night, in case the rules change)
  • Withdraw at least the minimum pension amount prior to 30 June 2016

If you have a SMSF, we ask you to consider having us review your 2016 contributions and pension withdrawals prior to 30 June 2016 to ensure you do not exceed your caps and incur an unnecessary tax bill.

_______________________________________________________

For more information, please contact:

Super Guarantee (SG) Rates Change

The current SG rate of 9.5% will continue unchanged for the next 6 financial years. The SG rate will increase to 10% from 1 July 2021 and thereafter will continue to increase by 50 basis points until it reaches 12% on 1 July 2025. Please refer the list below:

2014/15 9.5%
2015/16 9.5%
2016/17 9.5%
2017/18 9.5%
2018/19 9.5%
2019/20 9.5%
2020/21 9.5%
2021/22 10.0%
2022/23 10.5%
2023/24 11.0%
2024/25 11.5%
2025/26 12.0%