If you are looking at making personal superannuation contributions for 30 June 2021, there are a few reminders to be conscious of, including the following:
Carry forward unused concessional contributions
From 2019–20, carry-forward rules allow you to make extra concessional contributions – above the general concessional contributions cap – without having to pay extra tax.
The carry-forward arrangements involve accessing unused concessional cap amounts from previous years. An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap.
To use your unused cap amounts you need to meet two conditions:
If, after applying all your available unused cap amounts, you still have excess concessional contributions, you may need to pay extra tax.
A reminder for employers that superannuation contributions are deductible only once ‘paid’. While the June 2021 quarter superannuation guarantee contribution is not technically due until 28 July, many employers look to pay their June quarter superannuation contributions before 30 June to secure a tax deduction this year. Remember, merely accruing your superannuation contributions in your financial accounts is not enough to secure a deduction. The ATO has ruled that the contribution must be received by the fund to have been ‘paid’, so make sure that sufficient time has been allowed for the contributions to get to the fund.
If you have any queries, please contact us.
Paul and Helder
Paul Griffiths is a Chartered Accountant with over 20 years assisting Australian Small Businesses with income tax, succession and tax planning matters.