CATCH UP SUPER CONTRIBUTION FROM 01/07/2019

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If you have:

·      A total superannuation balance below $500,000 as at 30 June; and
·      Not utilised your entire concessional contributions cap ($25,000) for the year

then you can ‘carry forward’ the unused amount on a rolling 5 year basis.

For example, if your total concessional contributions in the 2018-19 financial year were $10,000 and you meet the eligibility criteria, then you can carry forward the unused $15,000 over the next 5 years. You may then be able to make a higher deductible personal contribution in a later financial year. If you are selling an asset and likely to make a taxable capital gain, a higher deductible personal contribution may assist in reducing your tax liability in the year of sale.

Remember:
·         Your total superannuation balance must be below $500,000 as at 30 June of the prior year before you utilise any carried forward amount (within the 5 year term); and
·         In some cases, an additional 15% tax can apply (30% total) to concessional contributions made to super where income and concessional contributions exceeds certain thresholds ($250,000 in 2018-19). Your income could be higher than usual in the year when you sell an asset for a capital gain.









Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of the use of all or any part of information provided in this article.
 

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