The end of the 2016/17 financial year is almost here, so now’s the time to review your concessional superannuation cap to minimise your tax.
The concessional superannuation cap for 2017 is $30,000 for individuals aged 49 or under, and $35,000 for individuals aged 50 years or over. Do not go over this limit or you will pay more tax!
Note that employer super guarantee contributions are included in this cap. Where a contribution is made that exceeds this limit, the excess is taxed at the fund member’s marginal tax rate plus administrative charges.
In order to claim a tax deduction in the 2017 financial year, the contribution must be received by the super fund by 30 June 2017. It is important to make the contributions at least a few business days prior to 30 June to allow sufficient processing time for your super fund.