With the end of the financial year fast approaching, we’d like to remind you about some potential opportunities for super contributions. There are a number of strategies that may be of benefit in the lead up to 30 June:

• Co-contributions: Individuals who are working and have Assessable Income + Reportable Fringe Benefits & Reportable Employer Super contributions under $46,920 can qualify for some matching from the government – as per the attached flyer, it’s free money in your super!
• Self employed deductible contributions: those looking to reduce their taxable income can consider a contribution to super before 30 June, either personally (sole traders/partnerships) or from the company (Pty Ltd business operators). Be mindful of the limits outlined below.
• Employees Salary Sacrifice: Salary Sacrifice arrangements (as outlined in the attached) are a very effective means of reducing taxable income and boosting retirement savings. Again, be aware of the limits.
• Spouse Contributions – A tax rebate (maximum $540) may be available for after-tax contributions to super on behalf of a low-income spouse. See attached flyer for more information.

Some things to be mindful of:

• Timing of payments: ensure contributions are made in time to be applied before 30 June, or they will likely be counted against next financial year’s limits.
• Contribution caps: for the current financial year, Concessional Contributions (employer compulsory, salary sacrifice and member contributions where a tax deduction is claimed) are limited to $25,000 for who were under age 59 on 30 June 2013, or $35,000 for those who were 59 or over at 30 June 2013.
• Employer payment of insurances or fees can also count against these limits, in some cases being funded by additional contributions.

With investment markets posting some positive movements, it is a great opportunity to invest in a tax effective manner. If contemplating any contributions, please clarify your individual situation with your AGS planner or accountant.

As always please contact us for any advice or assistance.

Published : 31 Mar 2014