Concessional Contributions – the following concessional contribution caps apply in relation to the year ended 30 June 2014:
- $35,000 for those who were aged 59 years or over on 30 June 2013.
- $25,000 for those under 59 years.
*Note that employer super guarantee contributions are included in these caps.
Keep in mind where a contribution is made that exceeds these limits; the excess is taxed at marginal rates.
In order to claim the maximum tax deduction in the 2014 financial year, the super fund must receive the contribution by 30 June 2014. In other words the transaction should be made 2-3 days prior as the funds must be cleared. In 2014, the 30th of June is a Monday hence to be safe the transaction should be made on Wednesday the 25th of June.
To quickly boost your super you could access the government co- contribution scheme. If your adjusted income is less than $48,516 you can make after-tax (non-concessional) super contributions that attract a government payment.
For each dollar of contribution the government puts 50 cents into your super fund, up to a maximum government co-contribution of $500. If your income is below $33,516 you would be able to access the maximum co-contribution of $500. Once your income is over this amount the co-contribution amount phases out and cuts off at $48,516.
Another quick way is the tax offset for spouse contributions to a low-income partner’s super fund.
If a partner earns less than $10,800, the spouse can make a payment of up to $3000 into the partner’s super fund. The partner then receives an 18 per cent tax offset on their income tax for the contribution. It works out as a maximum offset of $540.
For more information on the contribution amount, dates, threshold and offsets, contact Jacky Chan on (03) 9798 66 22 or email at Jacky@zimsenpartners.com.au.
About the Author
At Zimsen Partners, Jacky has assisted all the directors and senior accountants with numerous cases ranging from individually complex returns to small and medium sized businesses day-to-day challenges.
This article was produced by Zimsen Partners. It is intended to provide general information only in summary format on accounting, business advisory and taxation issues. It does not constitute accounting advice, and should not be relied on as such.