Top superannuation tax tips for 2017

Top Superannuation Tax Tips for 2017

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 The Superannuation fund has to receive contributions before 30 June and transfers and deposits should clear at the same time. Here are some tips to maximise your tax deductions:

Concessional superannuation contributions are tax deductions with a tax of 15%. People who are 49 years old and above can claim up to $35,000 of tax deductions while those who are below 49 years of age can claim $30,000. For those on the 47% marginal tax rate, a $35,000 concessional contribution can save them $11,200 in tax and help boost their retirement savings.

Meanwhile, under the Non Concessional Contribution rules, individuals can still maximize their $180,000 or $540,000 limit under the bring forward rule for people under 65 years of age up to 30th June 2017. From 1st July 2017, its limited to $100,000 or $300,000 under the bring forward rules. However, if you have reached your $1.6 million super limit on 30th June 2017 you won’t be able to take advantage of the $100,000 or $300,000 Non Concessional Contribution limits. Those who have more than $250,000 of income in 2016/2017 should divert their investment income to a person with a lower marginal tax rate to minimise the extra tax on their contributions and maximise tax deductions.

On the other hand, the removal of tax benefits related to transition-to-retirement will reduce benefits significantly, especially for high income earners below 60 years of age. Starting 1 July, superfunds will pay 15% of tax on their income and 10% on capital gains. Many people are expected to cease TRT and revert to accumulation phase.

Those who are 60 years old and retired may consider the account based pension (ABP) benefits as the superfund will still be tax free for up to $1.6 million in “pension account assets” and the income paid to the taxpayer will completely be tax free.

Under the new $1.6 million transfer balance cap, any income from any subsequent increase in the balance will still be tax free. However, it does not apply to a reduction because of pension payments or a decline in assets because additional amounts can’t be transferred to the pension account to top-up the pension balance where the $1.6 million transfer balance cap has already been fully used.



Those who have an income of $51,02 and below may make a personal contribution to their superfund and get up to $500 tax free from the government. For more information about superannuation and taxes in Australia, contact a Specialist to discuss your particular circumstances.

Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.

Related:  10 golden rules for Self Managed Superannuation Funds (SMSF) a great place to start before setting up an SMSF

*Photo from flickr

3 responses to “Top Superannuation Tax Tips for 2017”

  1. Glenda Roberts says:

    I think you should clarify what is regarded as 49 years old by the tax office. I almost made the mistake of claiming a $35,000 deduction this year because I am 49 now- but I wasn’t 49 on June 30 2016 and this is the criteria for the allowable limit of $35,000 listed on the ATO website

  2. Anne says:

    Hi there,
    Please advise on your accountancy fees to complete quarterly bas and end of year tax returns? I run a small consultancy business with a gross annual turnover of approx $55,000, as I am considering changing my accountant.

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