There is more to super than just getting a tax deduction!

As the financial year is about to close (Friday is the 28th), there are some actions that can be taken before then.

1. Claim a tax deduction by maximising contributions

The concessional cap on contributions is $25,000.  This includes the employers Super Guarantee of 9.5% and salary sacrificed contributions.

If the total contributions this year to date is less than $25,000, a personal contribution can be made by the taxpayer to bring the total contributions to the $25,000 cap.  There are two caveats;  the taxpayer must be under 65, or if between 65 and 74, pass the work test of 40 hours in a 30 day period, and to not exceed the cap.

2. Make non-concessional contributions

These are contributions for which a tax deduction is not claimed.  The maximum contribution is $100,000 a year, the total super balance at 1 July 2018 must be less than $1.6 million, and the taxpayer be under 74 and meet the work test (40 hours over 30 days).  One purpose of these may be to build up the balance in the SMSF.

If under 64 at 1 July 2018, the 'bring-forward rule' allows a contribution in this year of $300,000 (and then nothing in the next two years).

3. Access the Government Co-Contribution

The Government will contribute up to $500 if a non-concessional contribution of $1,000 is made.

The person's taxable income must be less than $37,697 (cutting out at $52,697), they must be under 71 at the end of the year, at least 10% of income must be earned from employment, and they can't exceed the $1.6 million super balance cap.

4. Claim a tax offset for a super contribution for your spouse

Where a spouse earns less than $37,000 and you make a spouse super contribution of up to $3,000, you can claim a personal tax offset of 18%, or $540.  The tax offset phases out on a $ for $ basis, up to $40,000.

Spouse income includes assessable income, fringe benefits and reportable employer super contributions (eg., salary sacrifice).

The contribution must be received by the Fund before 28 June, and the taxpayer must also notify the Fund of the contribution and receive an acknowledgement in order to claim the deduction.  This can be done on a standard ATO form, or even online with the Fund.