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With the end of the financial year fast approaching, do you have clients enquiring as to how much money they can contribute to their superannuation before 30 June 2019?
The first thing to point out is that as a BAS agent or Bookkeeper you are not able to provide advice as to whether a client should make a contribution to superannuation, as this falls under the financial advice regime. Any personal advice of this nature needs to be provided by someone who has the appropriate licence. However, you can certainly provide factual advice as to the maximum contribution limits available. They are:
Concessional contribution cap - $25,000 (includes salary sacrifice contributions, Super Guarantee contributions from an employer, and personal contributions that are claimed as a tax deduction).
Non Concessional contribution cap - $100,000 * (the main type of which are personal, after-tax contributions that are not claimed as a deduction).
There is also the ability for those aged under 65 to bring forward three years of non-concessional contributions* (e.g. up to $300,000 in a single year, but no more in the following two financial years)
*Both the non-concessional limit and the use of the bring forward contribution is subject to an individual’s total Superannuation Balance being less than $1,600,000 and the bring forward rules.
If an individual is aged 65 or over, there are various work tests that need to be met in order to be eligible to contribute to superannuation, so specific advice should be sort for those cases.