No More Work Test For Recent Retirees
Effects those aged 65 to 74 with a total superannuation balance below $300,000
You will be able to make personal contributions for 12 months from the end of the financial year in which you last met the work test.
This means those who didn’t meet the work test in the current financial year may still contribute to super if the work test was satisfied in the preceeding financial year.
The benefits are that we can consider a re-contribution of money back into superannuation as a strategy, make a personal deductible contribution to reduce your taxable income or make a small business contribution following the sale of a business to potentially minimise or eliminate capital gains tax from the sale.
Carry-Forward Concessional (ie. before-tax money) Contributions
Effects those with total super fund balances of less than $500,000 in the previous financial year
From 1 July, those with less than $500,000 can utilise any unused concessional contribution cap amount from the previous financial year.
They can be carried on from 1 July 2018 forward on a rolling basis for 5 years.
This provides strategies to consider such as contribution splitting with a spouse, commencing a transition to retirement pension and withdrawing any available unrestricted non-preserved component.
Reach out to us via phone (02) 8539-7233 or email email@example.com to discuss these new changes.