Superannuation contributions

Contributions - 2015 year increased tax deductible contributions cap for anyone 49 and above

For anyone who is under age 49 on 30 June 2014 the maximum tax deductible contribution that can be made to superannuation without penalty is $30,000. However, for anyone aged 49 or older on 30 June 2014 the maximum amount is $35,000. These contributions include amounts you may make as salary sacrifice, Superannuation Guarantee or personal deductible contributions, if you qualify. If you wish to maximise your contributions before 30 June 2015 then deposits have to be received in the super fund bank account before 30 June 2015.

If you are older than 65 you will need to satisfy a work test to contribute to super in most cases. You will need to work for at least 40 hours during 30 consecutive days at any time during the financial year to make tax deductible and non-deductible contributions to super.

Making after tax contributions to super

You can make after tax contributions to super which could come from your personal savings, transferring personal investments, an inheritance or from the sale of investments. This financial year the maximum personal after tax contribution is $180,000.  However, if you are under 65 you can contribute up to $540,000 in one year, effectively bringing forward two years additional contributions. This strategy allows you to make substantial contributions to super and build up your retirement savings. 

While the above strategy may sound like a real bonus, you need to make sure you don’t exceed the after tax contributions caps because there may be penalty tax payable. This could be as high as 46.5%.

We recommend you contact us if it is your intention to make large after tax contributions to super.

Government Co-contribution

If your adjusted income is less than $49,488 you may like to take advantage of the Government Co-contribution. You can do this by making after tax (non-concessional) super contributions before the end for the financial year. For every dollar of contributions that are eligible, the Government contributes 50 cents to your superannuation up to a maximum government co-contribution of $500. For 2014/2015, the maximum government co-contribution is payable for individuals on incomes at or below $34,488 and reduces by 3.33 cents for each dollar above this, cutting our completely once in individual’s total income for the year exceeds $49,488. 

Be aware that is you are to contribute an after tax amount to receive the Government Co-contribution, the contribution rules mentioned previously in this letter still apply.

Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.