SUPERANNUATION
SUPER CONTRIBUTION CAPS FOR 2017/18 YEAR
| Concessional contributions | $25,000 |
| Non-concessional contributions | $100,000 |
| ($300,000 using the 3 year brought forward rule) Division 293 tax starts from adjusted taxable income of | $250,000 |
| Minimum Superannuation | 9.5% of earnings |
| Where does employer obligated super start | if earnings are more than $450.00 per month. |
EMPLOYER SUPERANNUATION OBLIGATION FOR EMPLOYEES
The superannuation guarantee rate is 9.5%. Please ensure you have paid 9.5% of the gross wages of your employees as an employer super contribution to the employee’s nominated superfund before 28 July 2018. No change in the SG rate of 9.5% for the next financial year.
CHANGE IN TAX RULES FOR CLAIMING PERSONAL CONTRIBUTIONS TO A SUPERFUND
Since 1/7/2017 a taxpayer who receives employer super contributions can now make personal super contributions to ensure their total super contributions reach the concessional contribution cap of $25,000 for the year ending 30 June 2018.
This personal ‘top-up’ super contribution will need to be paid to their superfund before 30 June 2018 and be within the $25,000 concessional contribution cap to be a tax deduction for this financial year.
DOWNSIZE CONTRIBUTION TO A SUPERFUND
From 1/7/2018 if you are over 65 years and have owned your home for over 10 years you can contribute up to $300,000 from the sale proceeds of the home as a contribution to a superfund. The downsize contribution must be paid within 90 days of settlement on the sale of the home. Downsize contributions to a superfund are not tested by the concessional or non-concessional contribution caps and are excluded from the $1.6 million total super balance restriction.