MAKING PERSONAL CONTRIBUTIONS?

A welcome forthcoming change is the ability for all contributors to claim a tax deduction for concessional contributions, even if an employer is paying superannuation for them. This will not take effect until 1 July, so if you are thinking of contributing extra money to your super it may be worthwhile waiting.

Now, concessional contributions are capped at $35,000 a year for people aged 50 and over. This will drop to $25,000 for everybody after 30 June. If you have the funds available, and are in a situation where you can claim a tax deduction immediately, you could consider making a concessional contribution sooner rather than later.

This reduction in the concessional contribution cap has huge ramifications for anybody who is salary sacrificing to the maximum. This financial year your limit is $35,000, next financial year it’s $25,000.

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