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This strategy suits people who:

• In the past have been reluctant to salary sacrifice as they were uncertain about their cash flow needs.
• Receive unexpected employment income and no prior salary sacrifice agreement was put in to place (e.g. Bonus).
• Earned too much in the past to meet the 10% test, but not enough to fully use CC cap via salary sacrifice —with the removal of 10% rule, this strategy is available to them.

 There are a few things to remember:

• You can contribute to superannuation up to age 75 subject to meeting the work test between 65 and 75 years of age. To meet the work test, you need to be gainfully  employment for at least 40 hours during a 30 day period.
• Any contributions for which you claim a personal deduction will count toward your $25,000 concessional contribution cap. This cap also includes any Superannuation Guarantee or any other employer contributions made to super.

Steps to take to make the concessional contribution

You will need to make your super contributions before 30 June 2018 if you want to ensure they are counted towards this year’s cap. For it contribution to count for this year, it has to be received by the fund prior to 30 June. Since the processing can take a few days, do not leave it until the last day. In addition, you will need to lodge a ‘Notice of Intent’ form with your super fund. This is critical to ensuring you can claim a deduction for your contribution. You need to do this before you lodge your tax return is lodged for the year the contribution was made, or the end of the financial year following the financial year in which the contribution was made. You also have to lodge the notice before you exit the fund (e.g. rolled over your funds to another super fund, or withdraw them), or start a pension.

Speak to your adviser to ensure you are maximising your savings and minimising your tax.

Sam Morris

Compliance and Technical Manager
Prime Financial Group

Disclaimer:

This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information is intended to be general in nature and is not personal financial advice. It has been prepared without taking into account your particular circumstances and needs. Hypotheticals, illustrations and examples are provided for illustrative purposes only. They should not be relied on to make decisions. Any reference to taxation, legal or other matters are based on Prime’s interpretation of laws existing at the time and may change with time.

Before acting on any information, you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives. We recommended that you obtain financial, legal and taxation advice before making any financial investment decision. If any products are detailed, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions. Where quoted, past performance is not indicative of future performance