Check pre-tax super amount
For many people saving for retirement, possibly the most significant change in superannuation rules is a cut in the amount that can be contributed from pre-tax income. These are called concessional contributions.
From July 1, you can concessionally contribute up to $25,000 into your super fund each financial year. This includes your employer’s 9.5% SG contribution, any salary sacrificed amounts and tax-deductible personal contributions (typically paid by the self-employed).
Until June 30, the concessional cap is substantially higher at $30,000 (under 49) or $35,000 (49 or over). If you can make additional concessional contributions, it’s a good idea to get the ball rolling as soon as possible to take advantage of the current higher cap.
For many people who already salary sacrifice the maximum amount, now is very much the time to take some action to prevent problems arising after July
1. If your arrangement is set up to take advantage of the current caps, you risk making excess contributions if you don’t adjust your deal with your employer. This can lead to additional tax charges.
If you’re affected, you need to urgently adjust the amount you salary sacrifice so that your overall concessional contributions are reduced to $25,000.