As the end of another financial year approaches, it is timely to consider any recent superannuation updates and tips relevant to next year.
The Superannuation Guarantee rate, which is applied to an employee’s ordinary time earnings, is proposed to increase to 9.5% from 1 July 2015 and remain fixed for the next four financial years.
To be deductible and avoid penalties, Superannuation Guarantee Contributions must be paid to a fund no later than the 28th day after the end of each quarter. Paid means “received” by the superannuation fund (not when you post a cheque). Salary sacrifice voluntary contributions must be paid by the 28th day of the month after the month in which salary is withheld.
From 1 July 2014, employers (with 20 or more employees) will be required to make all superannuation contributions on behalf of employees by lodging data electronically with the Taxation Office (SuperStream). The start date for employers with 19 or less employees is 1 July 2015.
Any salary sacrificed superannuation contributions must be documented in writing on 1 July each financial year between the employer and employee (i.e. before the year starts).
Individuals with income greater than $300,000 will continue to be liable for an additional 15% tax on their concessional superannuation contributions. The ability to split income (e.g. family trust income) should now be a consideration in respect of the additional tax.
Concessional contributions are summarized below:
|Year||Age 60 & Over||Age 50 to 59||Under Age 50|
Non-concessional contributions are summarized below:
|Year||Amount||3 Year “Bring Forward”|
The “bring forward” is only available if you are under 65 years of age.