Year End Super Strategies
Written on the 20 May 2014 by Macmillans Waller Fry - Accountants in Maitland
Superannuation issues are some of the most important considerations to keep in mind as the end of the financial year approaches.
The spouse super tax offset allows higher earning taxpayers who contribute super for their non-working or low income earning partners to be eligible for a tax break.
To be eligible for this benefit the lower earnings spouses’ income, total reportable fringe benefits, and reportable employer superannuation must have been less than $13,800 in the financial year.
A salary sacrifice arrangement is where an individual agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value. Salary sacrifice superannuation contributions count towards an individual’s concessional contributions cap.
The Government co-contribution scheme is an initiative for Australians to make a bigger commitment to their super savings and to give individuals more money to add to their superannuation fund.
Eligible Australians who earned less than $33,516 in the 2013/2014 financial year will receive 50 cents for every dollar, up to a maximum of $500, of after-tax money that they contribute to their super account.
Individuals who earn over $33,516 will have their Government co-contribution reduced by around three cents for every dollar over that amount, up until it reaches zero at $48,516.
To be eligible individuals must be under 71 years, make at least one personal super contribution and be a permanent resident or citizen.
The 2014-15 financial year will see an increase in the concessional contributions cap. The present cap of $25,000 will increase up to $30,000.
The indexation will not apply to the temporary higher cap of $35,000 currently available to those individuals 59 and over as at 30 June 2013 (for 2013-14). However, the temporary higher cap will extend to individuals who are 49 and over as at 30 June 2014, and will apply for the 2014-15 financial year.
The indexation of the concessional contributions caps has some flow-on effects the non-concessional contributions cap. Therefore, from 1 July 2014 the non concessional contributions cap will increase from $150,000 to $180,000.
Author: Macmillans Waller Fry - Accountants in Maitland
|The Australian government has launched the Better Tax campaign in order to help inform the public of tax reforms coming into effect. Designed to “better Australia”, here is a look at what this plan is and its meaning for you. What it is:The Better Tax initiative is designed to help prevent bi...|
|Personal loans have become a fast-growing financing option for consumers, with payday apps and websites gaining popularity. For aid between paychecks, payday loans can be very helpful for the pay cycle lull. Taking out a loan is not something to enter into lightly though, there are many variables...|