We receive many questions about the concessional contributions caps. We regularly update readers on any changes to the contributions caps (and other super changes), and the implications of such changes on super strategies.The list of 10 Q&As set out below answer many of questions that we have received on the ... Read more
Tax-deductible super contributions: No longer need to meet 10% income test
Q: I work for myself but I also have a part-time job. I have been told that even though I receive SG from my part-time employer, I can also make tax-deductible super contributions. Is that true? And if it is true, how does it work?All Australians are eligible to make tax-deductible super contributions. A ... Read more
Managing capital gains tax with super contributions
Q: I am about to make a capital gain of about $200,000 on an investment property I have owned for several years. My marginal tax rate is 32.5% and I am an employee, and 43 years old. I want to contribute the equivalent of the capital gain to my super (which is not a self-managed fund), so I can save some money for the ... Read more
Employees can now make tax-deductible super contributions (since July 2017)
Note: The option for employees to make tax-deductible super contributions became law on 29 November 2016, and took effect from 1 July 2017.As an employee, the general rule when making super contributions is, you can take advantage of the concessional (before-tax) contributions rules by salary sacrificing, or by ... Read more
Who can make tax-deductible super contributions?
Note: Since 1 July 2017, all eligible Australians under the age of 75 can claim tax deductions for personal super contributions, subject to the annual concessional contributions cap. Such a measure can assist Australians who may be partly self-employed and partly employed, or individuals who work for employers who ... Read more
Investment performance: 25 years of SG delivers 7.4% a year
Since Superannuation Guarantee was introduced more than 25 years ago, the average long-term median return generated on a ‘balanced’ super fund account is 7.4% a year for the 25-year period to 30 June 2017, according to regular data released by superannuation ratings agency, SuperRatings.Median return means the ... Read more
Boost your super: 10 planning tips for 2017/2018 year
Although many people are still grappling with the July 2017 superannuation changes (announced in the 2016 Federal Budget), it’s important to note that many of the underlying super rules remain unchanged. For example, the Superannuation Guarantee (SG) rates remain the same, contributions caps are still around (albeit ... Read more
Superannuation checklist: What rules apply for the 2017/2018 year?
Although the Coalition government has made significant amendments to Australia’s superannuation rules, many of the super policies did not change from July 2017 (see list later in article).For your convenience, we have split the 2017/2018 year superannuation checklist into 2 categories of super rules. The first ... Read more
Superannuation contributions: Wearing two caps for 2017/2018 year
Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $25,000 concessional and $300,000 non-concessional sums (a total contribution of $325,000) to my super fund for the 2017/2018 year?A: The contributions caps are definitely separate ... Read more
Super concessional (before-tax) contributions: 2017/2018 survival guide
Note: This article explains the rules applicable to concessional contributions for the 2017/2018 year, and also explains the rules applicable for the 2016/2017 year. You can also find information about the lower concessional cap, effective from 1 July 2017, see SuperGuide article Concessional contributions caps to be ... Read more
MySuper: 115 super funds now available
Note: This article provides a complete list of official, authorised MySuper products. This list will be updated regularly if any additional MySuper products are authorised by the Australian Prudential Regulation Authority (APRA). This article was last updated on 31 May 2017. If you are looking for a list of all super ... Read more
Super for beginners, part 5: Is super my money, or the Government’s money?
Q: I never understood the term ‘superannuation’. Is that our money or government money? If it is our money why can’t we do whatever we want with it? Isn’t it illegal to cut our rights when it comes to this matter?I agree with you that the term ‘superannuation’ is confusing.If an individual is employed, the ... Read more
