Personal deductible contribution opportunity deadline looming

Just a reminder that if you are an employee, you can now make a personal contribution to Superannuation from your cash savings and claim a tax deduction, hence you still have a few days left in this financial year.

But be aware of what you need to do!

Self-employed clients, the following also applies to you.

  1. Obviously, the first thing that you must do is to actually make a personal contribution to superannuation.
  2. Second is to make sure the contribution will be received by the Super fund on or before 30 June. As 30 June 2018 is fast approaching (and it falls on a Saturday), it is important to check with your Super fund to understand their cut-off date for receiving contributions.

A super contribution is only deemed to be made when it is received by the super fund.

For example, if you contribute electronically via BPAY, the funds are only deemed to be received when the funds are credited to the super provider’s account, which may not be the day you make the BPAY transaction.

  1. Finally, to get your deduction, you need to submit a valid notice of intent This notice advises the super fund of the amount you intend to claim as a deduction.

You can use the ATO form click here or the form provided by your Super fund.

Lodgement of the notice of intent form must be by the earlier of:

  • the date the 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.

Other issues to consider

  • Be careful not to exceed the allowable contribution limits and total balance limits;
  • Are you eligible for the Government’s co-contribution?
  • Are you eligible for the Low Income Superannuation Tax Offset (LISTO)?
  • Are you eligible to make a spouse contribution?

For qualified, professional advice, talk with Ian today on 3822 7201 to work out if you can benefit from making a Superannuation contribution.

 


 

Ian Chester-Master is a Certified Financial Planner with over 20 years’ experience and a Director of Your Financial Design P/L.

Your Financial Design Pty Ltd is a Corporate Authorised Representative (1233744) of Madison Financial Group Pty Ltd | AFSL No. 246679 | ABN 36 002 459 001.

General Advice Warning

Before acting on any information in this article, we recommend that you consider whether it is appropriate for your circumstances.  You should not act on any advice until we have fully considered your personal circumstances and provided you with a Financial Services Guide, Statement of Advice and Product Disclosure Statement/s.