New rules this year, for the first time allow anyone to claim concessional super contributions as a tax deduction. This is very exciting. Full details of the changes are in this previous post. However as we near the year end, here is a quick summary of the important bits ………
This will be a useful strategy if …….
- You forgot to salary sacrifice, or
- You have a large capital gain this year which you would like to reduce, or
- You will receive a trust distribution which you would like to reduce, or
- Your taxable income from any source will be over $35k & you would like to reduce it
The most you can claim is $25k, BUT this includes any 9.5% super guarantee paid by your employers AND any salary sacrificed amounts. You must also be under age 65 or satisfy the work test.
How do I do it? …….
- Log onto your superfund and add up any concessional contributions made this financial year to date. Estimate what else will be contributed before June 30, and determine how much more you could contribute to bring you up to $25k.
- Find out the BPAY code for making personal contributions to your fund and make sure the contribution is paid and cleared before 30 June. Different funds have different year end deadlines, so do it ASAP.
- Complete the intention to claim a tax deduction notice and send it to your superfund.
- The superfund will send you a confirmation notice which you need to include with your tax papers. No notice – no tax deduction, so don’t lose it!
If you have any questions don’t hesitate to get in touch.
Lindsay 0413 952 180