Are you aware that the superannuation changes introduced on the 1st of July 2017 were not just about capping the amount of capital that can be transferred to retirement pension phase? They also included big changes to tax deductible and non-deductible contributions.
For the 2018 Financial Year, the concessional contribution cap is $25,000 for everyone who is eligible to make these contributions. There’s no longer a higher cap for anyone 50 or over.The tax deduction for personal contributions has also changed, but there’s a bit of a catch as personal super contributions claimed as an income tax deduction count towards the concessional contribution cap of $25,000 for the financial year 2018.
The annual non-concessional contribution cap for the 2018 Financial Year is $100,000. This has been reduced from the 2016/17 figure of $180,000. However, if the total amount you have in super on the 30th of June in the previous financial year is not less than $1.6 million, you won’t be able to make a non-concessional contribution for that financial year.
The work test still applies for those 65 and above when they make a contribution to super, but this means no personal contributions after age 75. For those aged at least 65, from the 1st of July 2018, there’s a new type of personal contribution which allows those who qualify to contribute up to $300,000 to superannuation from the sale of their family home that has been owned for at least 10 years.
If you require clarification on any of these points, please contact your 360Private Advisor.