At the moment, many people are looking to put money into their superannuation. One of the most common questions we get asked is, “How much can you put into super?” As accountants, we can’t tell you how much you should put into super because that’s financial planning, and we don’t have a financial planning license. However, we can tell you the rules and the tax effects of putting money into super.
Contribution Limits and Deadlines
For the current year, the maximum amount you can put into superannuation is $27,500. This limit is subject to a couple of age limits, so if you’re nearing retirement, reach out and get some strategic advice.
For most people, the limit is $27,500, and this includes any amounts paid by your employer on your wages, whether you’re the employer or working for someone else. The contributions need to be in your superannuation fund by June 30, so it’s best to aim for a deadline of June 15 to ensure all transactions are processed in time.
Catch-Up Contributions
There is also an ability to bring forward excess contributions that haven’t been claimed in previous years. If you haven’t put in the maximum amount each year and have additional funds to contribute—perhaps from a gain or some other reason—you may be able to top up your super.
If you have less than $500,000 in super and haven’t made the maximum contributions over the last five years, you can take advantage of this provision to increase your super balance.
The Best Course of Action
The best thing you can do is have a chat with us. We can look at your specific situation and help you understand the rules and tax implications of superannuation contributions. This can ensure you are making the most of your opportunities to save for retirement while minimising your tax liability.
In conclusion, while we can’t provide financial planning advice, we can certainly guide you on the rules and benefits of superannuation contributions. Reach out to us for more information and to make sure you are maximising your contributions effectively.