The annual Federal budget announcements generally give people reason to review their financial situation, despite this year’s budget release being generally free from any major blows. However, the most recent budget items are still just proposals at this stage and need to pass through parliament before they come into effect.
It is the 2015/16 legislated budget we are now re-focussing our attention to, as most of these changes are beginning to come into effect. Last year’s legislated budget changes could now affect you this year and there are things you should check to effectively managing your finances.
In particular, the changes to the Superannuation Caps will come into effect on 1st July with expensive penalties if you exceed the contribution caps.
If you have been making contributions to your super fund in addition to your employer contributions, or if you also have salary sacrifice contributions going into your fund, you need to check that they have not exceeded the current thresholds:
- Aged 50 years and older, $35,000 contribution cap
- Aged under 50 years old, $30,000 contribution cap
As of 1 July 2017 these thresholds will be reduced for $25,000, so you need to forward plan to ensure your continued contributions don’t exceed the new caps. Any contribution in excess of the cap can have tax rate and interest penalty implications.
If you need to check your contributions or manage excessive contributions made to your super, talk to UP Financial Planners about ways to review and remedy your super situation.
Kellie & Cesar
Disclaimer: The information provided in this document, including any tax information, is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. Millennium3 Financial Services Pty Ltd ABN 61 094 529 987, AFSL 244252