Whether you’re saving for your first home, about to downsize, still working or retired, don’t miss new opportunities to boost your retirement nest egg.
The new tax year brings the opportunity for many people previously unable to contribute to do so under rules that took effect on July 1.The pre-tax concessional contributions cap remains at $27,500. Regardless of how much you have in super, you and/or your employer may contribute up to this amount before additional tax applies. But there is no real penalty for exceeding this cap as the interest charge on the tax liability arising on an excess amount was removed last year.
Any unused concessional contribution cap amounts can now be used, provided the total amount you had in super – your total superannuation balance – was less than $500,000 at June 30, 2022.If you’re 67-74 and wish to make a personal deductible contribution, you must still first meet the work test – 40 hours of gainful employment in 30 days.
Making your own contribution gives you control and certainty over the amount and timing of the contribution and dealing with the cap at year-end. Also, you are not reliant on someone else, and have peace of mind knowing your money gets to your fund.