Superannuation Contribution Caps & other Super Tips for the New Financial Year

Article by Alex Cattell


The end of the 2019 financial year is fast approaching! The perfect time to review your super fund strategy for the year ahead…

First, ensure that any pension accounts have had the minimum withdrawn from them so that they maintain exempt status.

Also, make contributions so that they hit the super fund bank account prior to 30 June 2019.

But what are the superannuation contribution caps and other factors that will affect your strategy in the new financial year?

Pension minimums

If you currently receive a pension from your super fund, please ensure that at least the minimum amount has been withdrawn prior to 30 June 2019 to ensure that the pension rules are met.

If you’re unsure, please contact your fund administrator to review transactions. Work out exactly how much you’ve taken and see if anything further needs to be withdrawn prior to year-end.

If you’re in receipt of a Transition to Retirement income stream, you will also have a maximum amount that you need to ensure you don’t go over.

Superannuation contribution caps: The main considerations

Superannuation contribution caps for the 2019 year are:

  • $25,000 for concessional amounts, for which your employer or you claim a deduction; and
  • $100,000 for non-concessional, or after-tax, contributions.

Under current laws, individuals can claim a personal deduction for concessional contributions made into super, regardless of their employment status.

So it may be worth checking your capacity to make additional concessional contributions prior to year-end and topping up your super.

Remember to complete the necessary forms. These will be available from your super fund.

If you have an SMSF, the ATO website has a standard ‘notice of intent’ form to claim a tax deduction for personal super contributions. Alternatively, your SMSF administrator can provide a form to you.

Any contributions made by employers on your behalf will count towards your concessional contributions. So please check amounts paid into your fund on your behalf before making a personal concessional contribution. This will ensure that you don’t go over the $25,000 superannuation contribution cap.

Other super contribution tips

Please remember that the work test is still in force for people aged 65 to 75.

So, if you wish to make personal contributions, whether concessional or non-concessional, you will need to have met the work test for the 2019 financial year. This requires that you work at least 40 hours within 30 consecutive days in that financial year.

For lower income earners, another consideration is that the government provides a co-contribution amount of $500 to individuals earning less than $37,697 where they make a $1,000 non-concessional contribution.

Couples have the option to use the spouse contribution tax offset, which is currently $540 for non-concessional contributions, made by one spouse on behalf of the other spouse who earns less than $37,000 per annum.

Do you have any queries regarding strategy for your super fund as we approach the new financial year?

Please be sure to contact your accountant or financial advisor. Alternatively, contact us here for professional advice.