Are you salary sacrificing or making deductible contributions to superannuation? If so the new contribution limits announced in the recent budget may affect you.
The current arrangements are if you are aged 50 years plus you are able to contribute up to a total of $50,000 to superannuation each year without penalty. This applies to salary sacrifice and employer Superannuation Guarantee contributions if you are an employee, or if self employed to your deductible contributions.
However from the 1st of July this limit has been reduced to $25,000 a year.
What does this mean to you?
1. If you have the opportunity to maximise your contributions to superannuation prior to 30 June this maybe your last chance to do so.
2. If you are salary sacrificing to superannuation it may be time to review your arrangements so you don’t exceed the reduced limits in the future. (Excess contributions are taxed at the highest marginal tax rate negating the benefits of contributing to superannuation)
If you are affected by the changes please call us to make an appointment to review your current arrangements.