There are some great changes to the rules governing concessional contributions in 2018. Concessional contributions are contributions to super that are claimed as a tax deduction; either by your employer, or, by yourself. Concessional contributions are limited to $25,000 per tax payer per year. From 1 July 2017 anyone can claim a tax deduction for making a concessional contribution to super (In the past, only self-employed could do this). This makes is easy to contribute extra to super and reduce your taxable income. Don't forget to take into account any employer contributions, as they also count towards your $25k concessional limit. Another great change, coming from 1 July 2018 is the ability to carry over un-used portions of your concessional contribution limit for up to 5 years. For example, an employee on $100k would have employer contributions of $9,500 going into super. If they made no extra contributions, they have not used $15,500 of their limit that year. This can be carried forward for 5 years, and it is possible that the tax payer could make a tax deductible contribution into super in year 5 of $77,500. Imagine the tax saving if this coincided with the sale of an investment property with significant capital gains.
Welcome to Asset Accounting(QLD) new web site and blog. We will endeavour to bring you interesting and informative articles and ideas to help you understand the tax regime that we all have to live with, and some strategies to help you achieve your goals.