Changes to personal super contributions

Changes to personal super contributions


From 1 July 2017, the 10 per cent maximum earnings condition will be removed for those individuals who wish to claim a deduction for personal super contributions.

In 2016-17, individuals can claim a deduction for personal super contributions where they meet certain conditions. One of these conditions is that less than 10 per cent of their income is from salary and wages (the 10 per cent maximum earnings condition).

The removal of the 10 per cent maximum earnings condition will allow most people under 75 years old to claim a deduction for personal super contributions (including those aged 65 to 74 who meet the work test).

The intent of the change is to improve the flexibility of the super system, allowing more individuals to use their concessional contributions cap.

If you are a member of a Commonwealth public sector superannuation scheme, an untaxed fund such as a constitutionally protected fund (CPF), or certain funds that offer defined benefit interests, you will not be eligible to claim a deduction for contributions made to these funds. If you are a member of one of these funds and wish to claim a deduction, you can choose to make a personal super contribution to another eligible super fund.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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