Organise Your Super for EOFY
4 June 2013
With less than a month to go until the end of the financial year, Boyce Super Strategist Elizabeth Timmins advises it’s time for some superannuation housekeeping to ensure:
- Contributions are made in time to count towards the 2013 year.
- Income stream payments drawn from your fund meet the minimum pension requirements.
Cut-off Date for Contributions
30 June 2013 is a Sunday. Contribution to superannuation funds are counted when they are RECEIVED by the fund.
This means that if you are making a contribution into a fund you should allow plenty of time for the money to reach the fund before 30 June if you wish to claim the contribution in the 2013 financial year.
For SMSFs the date of entry shown on the superannuation fund bank statement is the date that counts for taxation purposes.
- Contributions made via an intra-bank transfer (for example from a NAB account to another NAB account) would need to be made at the latest on Thursday 27 June to ensure receipt by the fund on Friday 28 June – prior to the weekend.
- Contributions made via an inter-bank transfer (for example from a Westpac account to a Rabobank account) should be made before 5pm Wednesday 26 June at the very latest to ensure they are deposited prior to the weekend.
Transfers enacted over the weekend will hit your fund’s bank account on Monday 1 July – which is too late for you to be able to claim the tax deduction in the 2012/13 financial year.
Retail funds have cut-off dates for contributions before the end of the financial year, so you will need to check with your fund what the relevant date is to ensure you meet the deadline.
Concessional Contribution Limits
The concessional contribution limit for the 2013 year is $25,000 for all members.
If you have been taking advantage of salary sacrificing contributions with your employer or you have received a bonus payment that has been paid as a contribution to super, you need to be mindful you do not exceed the limit.
SMSF trustees should also be aware of how much members have made in non-concessional after-tax contributions; the current limit is $150,000. If a member is under 65 years of age, a limit of $450,000 can apply by bringing forward the next two year’s contribution limits.
Superannuation Income Streams (Pensions)
Where you are drawing an income stream from your superannuation fund, at least the minimum pension amount must be drawn each financial year. It is important to ensure you have taken your minimum pension before 30 June 2013.
Superannuation Guarantee Contributions (SGC) to increase to 9.25%
A further reminder that from 1 July 2013 employers will be required to contribute an additional 0.25% to their eligible employees’ superannuation funds, bringing the SGC rate to 9.25% for the 2013/14 financial year.
Further incremental changes will occur in future years until full implementation of 12% SGC rate in the 2019/20 financial year – although this may change depending on the outcome of the federal election later this year.
If you would like further information please contact your local Boyce Accountant or the Boyce Super Team on 02 6452 3344.