The catch-up super contribution rules are in play and may be a useful way to smash more tax deductible contributions into super.…what does this mean for you?!

You can now potentially make additional contributions as a catch-up on unused concessional cap amounts from previous years!!!

three Surprised cats

For example, your concessional contribution cap was $25,000 last year and if your total concessional contributions (including any super guarantee or salary sacrifice payments from your employer) was only $15,000, you may be eligible to use your previous year’s excess amount (e.g. $10,000) as part of this financial year in addition to this year’s cap of $25,000. That’s potentially a $35,000 tax deductible contribution this year.

To be eligible your total super balance at the end of the previous financial year must be less than $500,000. We can access this information and your carry forward unused contribution amounts instantly via the ATO portal (and you may also be able to via My Gov).

You’ll have to be quick! Super contributions need to be received by your fund on or before the 30th June to be included as part of this financial year. But please note, you may still be eligible to catch up in later financial years also.

If you’re unsure about your total super balance, concessional caps or whether or not you have any unused cap amounts from previous years, please feel free to give us a call.

The Halletts Team

 

 

As part of the 2021/2022 Budget announcements, the government has confirmed the halved minimum pension drawdown rates will be extended for the next financial year.

The below table outlines the temporary minimum pension % you may be eligible for (note the relevant age is based on your age as at 1 July 2021):

Table showing minimum pension by age bracket

You may have already made changes to your superannuation pension last financial year, however as circumstances change – grandkids to spoil/travel (to Queanbeyan) – you may want to review the level of pension, keeping in mind you can choose to draw more (in many cases, much more) than the minimum.


Please feel free to contact us if you have any questions.


The Halletts Team

Older man with Superman robe and cane holding

You may have seen headlines recently announcing the indexation of the superannuation general transfer balance cap from $1.6m to $1.7m (essentially the maximum you can have to fund a retirement income stream) from 1 July 2021.

Two pigeons discussing jargon

Some of our clients who are already indulging in the joys of a retirement income from their super fund may have done a happy dance in anticipation, but unfortunately you can put those tap shoes away ……. the rule only applies to those starting a retirement income stream for the first time on or after 1 July 2021. There are a few very specific exceptions but in general, No Soup For You sorry.

Soup Nazi saying "no soup for you!"

Looking on the bright side for those yet to start a retirement income stream, there will be a little bit more room in the cap for you to grow your balance should you choose (either individually, or with the benefit of specific financial advice which considers your personal circumstances, which our little blurb above is not!)

At this stage there is no change to the concessional or non-concessional limits, with some prospect that they will lift from 1 July 2022……

Dory saying "Just keep swimming"