Last Chance to make Superannuation Contributions for the 2019 financial year
Did you know that you can make concessional (deductible) superannuation contributions personally and claim these as a tax deduction?
Being June, this will be the last month where you can make final or top up superannuation contributions for the 2019 financial year.
Why is this beneficial?
• Contributions are usually tax deductible. Claiming a tax deduction will likely reduce your taxable income and tax liability. The tax saving will depend on your marginal rate of tax and individual circumstances.
• Contributions into Superannuation will be taxed at the rate of 15% in your superannuation fund.
What’s the catch?
• Payment made to your superannuation fund must be received and acknowledged by the fund by the 30th June 2019.
• You will be required to complete a Notice of intent to claim form and send to your superannuation fund. Your fund will then issue you an acknowledgement receipt which you will then use to substantiate your superannuation claim (deduction) in your individual tax return. The ATO requires this to be received prior to your income tax return being lodged.
• You 2019 total concessional superannuation contributions are capped at $25k. This amount also includes the 9.5% super guarantee contributions made by your employer(s). Make sure you check your total contributions made this financial year before making any additional personal super contributions.
• Taxpayers with Adjusted Taxable Incomes of more than $250k will need to pay an extra 15% tax on top of the normal 15% contributions tax.
30th June 2019 falls on a Sunday this year. Your personal contributions will need to be received and cleared by your Superannuation Fund by Friday 28th June 2019. We suggest making your contributions as early as possible.
Please contact Crosscorp for financial advice if you are considering making superannuation contributions and want to make sure you don’t make any mistakes. Various rules and restrictions can apply.