Earlier on this month the ATO released the new super contribution caps that will apply in the financial year 2014/15.
The concessional contribution caps, which relate to employer contributions, and personal contributions where tax deductions are claimed, are as follow:
|N/A||$35,000||Aged 59 and over on 30 June 2013|
|$35,000||N/A||Aged 49 and over on 30 June 2014|
The non-concessional contribution caps, which relate to contributions where no tax deductions are claimed, are as follow:
|$180,000||$150,000||General Threshold Cap|
By bringing forward three years’ contributions, taxpayers aged less than 65 may be eligible to contribute up to $540,000 to their fund after 1 July 2014.
The Superannuation Guarantee percentage will also increase from 9.25% this financial year to 9.5% for the 2014/2015 year. Notwithstanding any future changes, the Superannuation Guarantee rate is expected to increase gradually to 12% by the 2019/2020 financial year.
All things considered, these changes will increase the options to boost superannuation accounts to provide incomes in retirement.
If you would like to take advantage of the new superannuation caps please contact Nick on 03 9500 8000 or firstname.lastname@example.org.