Concessional contributions include:
If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.
From 1 July 2017, these contributions have been capped at $25,000 for each individual.
From 1 July 2018, individuals may elect to make concessional contributions up to the $25,000 cap to
supplement their SGC and salary sacrifice arrangements.
You must inform your super fund of your intent by way of a written notice as well as your accountant. Your super fund must then give a written notice of acknowledgement
From 1 July 2019 if you have a total superannuation balance of less than $500,000 on 30 June of the
previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.
The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.
Give us a call if you would like to discuss making personal contributions up to your concessional cap.
Excess concessional contributions from 2013-14 onwards are included as taxable income, taxed at
the marginal tax rate plus an excess concessional contributions charge. The ATO will write to individuals who exceed their cap, informing them of the tax and charge and the options available to make that payment.
If you wish to purchase property with your superannuation savings, this can only be done with an SMSF.
Currently, SMSF’s can borrow to purchase property, but there are many factors you should consider before going down that track. The big four and Macquarie Bank have exited this space since the Banking Royal Commission in 2019. Heritage, BOQ and Bendigo now have quite severe requirements for Limited Recourse Loans.
Currently (2020), Liberty Financial and La Trobe seem to be the best enquiry options. Of course, you can always lend your super fund the money from yourself at market rates.
However, if you would like a referral to a lending institution that can establish a loan through your SMSF, based on your personal financial position, give us a call. Variable interest is at ‘normal’ rates, rather than the inflated rates most banks charge.
Your SMSF will need a 30% deposit for a residential property and 35% for a commercial property.
Purchasing Property Info sheet
This is a tricky one for some SMSFs as SMSF administrators now need to know if you have other superannuation interests other than your SMSF.
The bottom line is that if you meet the general transfer balance cap of $1.6M at 30 June in any year, you are ineligible to make non-concessional contributions to any of your superannuation interest accounts.
You can view your total superannuation balance using ATO online services through myGov
Further restrictions apply to the 3 year bring forward trigger which you should talk to your accountant/administrator about.