EOFY Personal Super Tax Deductions are Back…
Can you claim a tax deduction this year? Probably…
With the end of the financial year creeping up, it is time to start thinking about income tax deductions.
Under the Government changes to super, the 10% qualifying earnings condition for personal super contributions was dumped. Good News…
So, before you had to prove that you earned less than 10% of your income from employment to be able to make and claim a personal tax deduction for a personal contribution. Now you don’t.
This means that most people can now claim a tax deduction for personal contributions to their SMSF up to the annual cap of $25,000.
(including those aged 65 to 74 who meet the work test).
Before the end of the financial year you need to:
• Check and confirm the total concessional contributions made for you in this financial year, to ensure they are below the annual cap of $25K.
• Review any current salary sacrifice arrangement you may have for its necessity and benefits.
To claim the tax deduction, you need to provide a valid notice of intention to deduct and have received acknowledgement of this notice from the fund.
i.e. a form from yourself to yourself as the SMSF trustee. (we can assist with this)
Splitting amounts to your spouse – Sharing your super.
If you are planning to share all or part of your personal contributions up to 85% with your spouse, you will still, have to do the paperwork stuff above before you share…
This change is good news and as a result you might want to adjust or re think your contribution strategies for future years.
How can we help?
We are SMSF Specialist advisors and we can assist you to ensure you are maximising your personal superannuation contributions.
Feel free to give me a call to have a chat,
Best before the 30 June 2018 use by date.
T & M. 90 22 77 22 or 0418 935 895