A super contributions deadline you won’t want to miss
If you plan to get more into your super this financial year, act very quickly.
If you’re aiming to make a personal superannuation contribution before the end of the current financial year, your actual lodgement deadline is probably just over one week away from now.
That’s because super funds generally have a lodgement deadline that’s about one full business week before 30 June so they have sufficient time to process contributions made into members’ super fund accounts.
Personal contributions, including standard concessional contributions (before tax), carry-forward concessional contributions, and non-concessional contributions (after tax), lodged too close to 30 June risk being carried over into the next financial year.
Self-managed super fund (SMSF) trustees typically don’t have this problem because, in most cases, their personal super contributions involve making an online intrabank transfer from their non-super account to their SMSF’s account.
However, if cash transfers are being made from one financial institution to another, SMSF trustees should also allow sufficient time for interbank processing.
Therefore, if you intend to make a personal contribution to your SMSF this financial year (30 June falls on a Sunday), any contributions must clear into your fund’s account by Friday, 28 June.
What you could do before your super fund’s processing cut-off date (or by Friday 28 June)
- Make a concessional contribution: If you’re below the current annual $27,500 concessional contributions limit, you could take the opportunity to transfer some more money into your account to take advantage of the lower 15% tax rate that’s charged on super contributions.
- Make a carry forward (catch-up) concessional contribution: If you haven’t used up all your annual concessional contributions limits over the past five financial years, subject to meeting certain conditions, you may be able to add more than $27,500 (the current concessional contributions limit) into your fund.
- Make a non-concessional contribution: If you have some after-tax money available, perhaps from the sale of another asset, you could consider adding this into your super fund account. The current annual non-concessional contributions limit is $110,000.
For more detailed information on the conditions around these and other super contribution options that may be available to you this financial year, reach out to the JBS Financial team here.
Important information and general advice warning
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©2024 Vanguard Investments Australia Ltd. All rights reserved.