25 Jun 2019
Superannuation Reform: New rules on Concessional Contributions
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
A concessional contribution is made when money is contributed into superannuation and a tax deduction is claimed for that contribution and it can come either from the client and or the employer.
It does attract a 15% contributions tax however it can help with reducing taxable income.
From 1 July 2019 clients can carry forward any unused concessional contributions cap amounts that accrue from 1 July 2018 onwards for up to 5 financial years provided that the clients total superannuation balance is below $500,000 at the previous 30 June.
That means that from Monday next week a client will be able to add the unused concessional contributions cap from the financial year ending 30 June 2019 to the $25,000 concessional contribution cap for financial year ending 30 June 2020 provided that the clients total superannuation balance is below $500,000 as at 30 June 2019.
WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances please do not hesitate to contact us directly.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.