The start of the new financial year brings with it a change to the Super Fund Contribution Caps, increasing the annual contributions you can make to super.
These updated caps can help you:
– minimise tax
– keep salary sacrifice arrangements up to date
– maximise the wealth held in your super fund
Concessional Contributions Cap
Concessional contributions include:
– employer contributions (including contributions made under a salary sacrifice arrangement)
– personal contributions claimed as a tax deduction by a self-employed person
|Age at 1 July 2014||2014/15|
Non-Concessional Contributions Cap
Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.
|Bring Forward Cap*||$540,000|
*Note: If you are under age 65 at any time during the financial year the contribution is made, you can bring forward two years of contributions, effectively allowing you to contribute up to three times the cap at once totalling $540,000 during 2014/15.
The concessional tax environment of Super Funds provide an opportunity to grow your net wealth that simply is not available outside of Super. Maximising the contributions caps above provides the opportunity to maximise these tax savings.
Written by: Chris Smith