A Quick Guide on the Upcoming Changes Regarding Superannuation

If you have a Self-Managed Superannuation Fund you might be aware that the rules are constantly changing. Over the past few years there have been many significant changes made and many proposed but never legislated.

We have prepared a quick guide on the upcoming changes and how they may affect your super and retirement plans.

Carry-Forward Concessional (Before-Tax) Contributions Start

You will be able to carry-forward your unused concessional contributions cap space amounts from 1 July 2018.

The first year in which you can increase your concessional contributions cap by the amount of unused cap is the 2019–20 financial year but only if you have a total superannuation balance of less than $500,000 at 30 June in the previous year.

Your total superannuation balance is only relevant before the start of the year you make the contribution. You can still access unused amounts from previous years if your total superannuation balance was over $500,000 at the end of 30 June before those years.

Timing of Contributions

Have you allowed enough time for contributions to be cleared before 30 June? Keeping in mind that 30 June falls on a Sunday this year. Be sure to finalise your contributions nice and early!

Note that the contribution is reported at the time of receipt by the superannuation fund, not in accordance with any obligations of the employer (i.e. timing of SGC payments).  Very little scope exists to have the Commissioner to exercise his discretion to have the amount reallocated to a different income year.

Have you considered making a non-concessional contribution?

You could be entitled to a co-contribution payment of up to $500.

To be eligible for a co-contribution, you member must:

  • Have a total super balance (TSB) less than the general transfer balance cap ($1.6m); and
  • The contributions made into super must not exceed the NCC cap for that year.

The co-contribution income thresholds are as follows:

YearMaximum EntitlementLower Income ThresholdHigher Income Threshold
2019 – 2020$500$38,564.00$53,564.00
2018 – 2019$500$37,697.00$52,697.00

At Advivo Accountants and Advisors, we have a dedicated Superannuation team to provide you with simple, leading-edge solutions; allowing you to make the right choice with respect to your superannuation needs.

Our dedicated team of accountants and superannuation specialists provide expert advice about the tax advantages of superannuation and will guide you every step of the way with your SMSF. Contact Us today!

Source: www.ato.gov.au