As the end of the financial year approaches it's time to consider the current limits on concessional superannuation contributions and the possibility of receiving a government co-contribution.

Government Co-Contributions

If your annual income is less than $46,920 you may be eligible for a government co-contribution.  A co-contribution of 50% of the personal non-concessional contribution made is payable up to a maximum of $500.

If you believe you will be eligible you should make a concessional contribution prior to 30 June 2013.

Concessional Contributions

Concessional contributions include :

• Employer contributions (including both the compulsory 9% contributions and salary sacrifice contributions)
• Personal contributions claimed as a tax deduction by a self-employed person.

The limit for the 2012-13 year for all ages is $25,000.  Any excess contributions are taxed at 31.5% in addition to the normal 15% contributions tax.

Tips and Traps

• Check your pay slip to confirm the amount of super contributions paid by your employer during the year.  If you are nearing the limit contact our office to discuss your options.
• The limits are based on when the contributions have been received by your fund, not when they have been paid.  Therefore it is important to check that any contributions paid for the June quarter have been received by your fund prior to the end of the financial year.  If not, these contributions would count towards your limit for the following financial year.

Should you have any queries or require further information on the above matters, please feel free to contact us.