Some opportunities to grow your super and retire with more may be available before and after 30 June this year.
Before 1 July 2017.
Maximise non-concessional contributions
In the current financial year, non-concessional contributions are capped at $180,000 pa or $540,000 if you bring forward up to two years’ worth of contributions. Other conditions apply (www.ato.gov.au). From 1 July 2017, the maximum non-concessional contributions you can make is $100,000 or $300,000 by bringing forward two years’ worth of contributions.
However, non-concessional contributions will not be able to be made if you have a total superannuation balance 5,6 over $1.6 million.
If you have sufficient money available that you would like to contribute to super, you may want to make non-concessional contributions before 30 June 2017 to take advantage of the higher cap.
Note: It is important to ensure that concessional and non-concessional contributions are made within the caps. Breaching the cap may result in significant tax penalties. As with all super contributions, they are only available once a condition of release has been met. Further information is available at ato.gov.au
Owl Financial Management is an Adelaide Based Financial Advice business. Super Reforms – Key Opportunities