Hello Chasers,
A tax planning tip often missed by most business owners looking to minimise their tax liabilities is the full use of their entitlements to claim the balance of their unused concessional contributions.
As from 1 July 2018, individuals with a total superannuation balance of less than $500,000 as at 30 June of the previous income year may be entitled to contribute more than the general concessional contributions cap (i.e., and make additional concessional contributions to utilise any unused cap amounts).
For example, an individual who did not make any concessional contributions in the 2019 income year (and whose total superannuation balance was less than $500,000) would have been able to make up to $50,000 of concessional contributions in the 2020 income year.
Unused concessional contributions are available on a rolling basis and can be carried forward for up to five years, after which they will expire. By taking full advantage of them you can significantly boost your retirement benefits whilst reducing your tax liabilities significantly.
The 2024 income year is the first year in which unused caps from all five previous years are potentially available to carry forward, but also the first year when the first carry forward concessional contributions that are unused for 2019 expire – never to be available to claim again!
To find out what your unused concessional contributions cap is you can look this up on your MyGov account by navigating to the Super tab and under Information go to Carry-Forward concessional contributions.
If you are in a position to use them don’t forget otherwise potentially you will miss at least the oldest year as that year expires with every new year going forward.
Please contact Shannae Hewett on 55612643 if you require assistance in relation to this measure.
Have a great day!
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