With 30 June fast approaching, it is important that you ensure all your superannuation needs are looked after before year-end.
For Superannuation guarantee purposes quarterly employer super contributions have to be made 28 days after the end of each quarter.
Notwithstanding the above, in order for superannuation contributions to be deductible and recorded in the 2015, year they must be paid before 30 June. To stop any issues arising it is best to ensure your superannuation contributions are actually received by your superannuation fund well before 30 June.
Superannuation contributions are subject to caps. The contribution caps for 2015 are as follows:
|Contribution type||Description||Limit (cap)||Tax rate if you go over the cap|
(Under 50 years in 2014-15)
|Contributions from before-tax income, or for which a tax deduction has been claimed.||$30,000||Amounts over $30,000 will be added to your assessable income and taxed at your marginal tax.|
(Turning 50 years old or older in 2014–15)
|Contributions from before-tax income, or for which a tax deduction has been claimed.||$35,000||Amounts over $35,000 will be added to your assessable income and taxed at your marginal tax.|
|Non-concessional||Contributions you make into your super fund after tax has been paid on them.||$180,000||49% for amounts over $180,000.
For contributions made from 1 July 2014 amounts over $180,000 may be withdrawn, along with any associated earnings. The earnings would then be taxed at your marginal tax rate.
|Non-concessional||There is a bring
forward provision for people
under age 65, who can go
over the non-concessional
cap by up to two years’
worth of contributions
without penalty.Please seek advice if you are considering this option.
If you have reached your preservation age you should consider whether it makes sense to commence a pension in your super fund. Even if you are still working it may be possible and worthwhile to commence a transition to retirement pension.
|Date of birth||Preservation age (years)|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|After 30 June 1964||60|
If you, as a member of a super fund, are in pension mode you will need to have made pension payments to meet the minimum pension draw amount before 30 June. If you do not meet your pension payment obligation the concessional status of your fund could be put at risk.
If you commenced a pension during the year you may also need to meet a minimum pension requirement.
|Age of Member||Minimum pension as a
% of the account balance
|65 – 74||5|
|75 – 79||6|
|80 – 84||7|
|85 – 89||9|
|90 – 94||11|
Investments & Insurance
For a SMSF, if you have not already, now is a good time to review your investment strategy to make sure it is in line with the trustee’s wishes and investments of the fund.
For a SMSF, we also suggest you document that you have considered whether any insurance should be taken up by the fund.
Trustees should ensure that any insurance held by the fund is appropriate. In particular if your fund holds total permanent disability insurance, care should be taken to ensure the policy has an “any occupation” clause.
If you have any questions in relation to any superannuation matters please contact us.
*Correct as of June 2015
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.