Concessional contribution cap changes - does it affect you?
The Federal Budget that was handed down by Wayne Swan on the 8th May held few surprises, however the superannuation goal posts have been shifted (again), particularly for the higher income earners.
To the end of the 2011/12 financial year, individuals over the age of 50 were able to make a concessional contribution to superannuation of up to a $50,000 cap. (Concessional contributions are those made on behalf of an individual and include Superannuation Guarantee, salary sacrifice and some personal contributions, where a tax deduction will be claimed).
This cap has been reduced for the 2012/13 financial year to $25,000.
If you are contributing large amounts to superannuation, or have implemented a transition to retirement strategy, it is important for us to review your level of contributions for this next financial year, to ensure that we do not breach the contribution cap, and not incur additional tax payable. We are in the process of contacting all of our clients that we believe will be affected by the reduction in the contribution cap, however if you have super elsewhere (i.e. Industry or Government fund) or super that we are not aware of, it is imperative that we arrange a review appointment at your earliest convenience, to ensure you do not breach the cap!
If you have not already been contacted, please do not hesitate to call our office to make an appointment with either Melisa, Cassandra or Sharyn, to review your contributions for the 2012/13 financial year.
The team at Bayside WIN Financial Strategists