We’re all about the right strategy for your financial situation, and super will be a big part of that in the years to come.
Have you got employees? Don’t forget that the SuperannuationGuarantee (SG) contribution rate increased to 10% on 1 July 2021.
The SG rate is the minimum percentage of an individual’s salary (ordinary time earnings) that their employer must pay into their superannuation. The SG rate has been 9.5% since 2014 and the increase is part of the Government’s long-term plan to increase the rate to 12% by 2025.
For all superannuation accrued for the July to September2021 quarter, the due date for payment is 28 October 2021. If you are already using a Cloud-based accounting software program, chances are the increase has already kicked in behind the scenes but it’s worth double checking before this date to make sure there’s no additional payment surprises coming your way.
The annual limit on how much you can pay into your super also increased on 1 July 2021.
Caps for both concessional (before-tax) and non-concessional(after-tax) contributions have been increased for the 2021/22 financial year –as shown in the table below.
Carry-forward rules allow you to make extra concessional contributions – that is, above the general concessional contributions cap –without having to pay extra tax. The carry-forward arrangements involve accessing unused concessional caps from previous years. An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap.
For example, if you only contributed $15,000 as a concessional contribution in the 2021 financial year, you effectively have an unused portion of $10,000 available. This means in the 2022 financial year you could contribute $27,500 plus the extra $10,000 carried-forward from 2021. This can be an effective way of getting more money into super plus also maximising your tax deductions.
Although it’s early in the game to start talking tax planning, we suggest you consider any concessional contributions you have made since 2019 and if any unused amounts can be made in 2022 to reduce your tax and increase your super. Any unused carried-forward amounts will expire after 5years so either use it or you may lose it! There are some eligibility criteria you will need to consider and your total super balance must be less than$500,000 to qualify, but please contact any of our team so we can review your individual position and eligibility.
Let’s get you Attuned to your super situation… For more advice on how you can prepare yourself and your business for whatever lies ahead, get in touch with one of our Attune Advisory team. Phone 1300 866 113 or click here.