Do…

• Review your current and planned salary sacrifice contributions to ensure they are or will be within the concessional contributions cap ($27,500).

• Be mindful of employer Superannuation Guarantee contributions relating to the 2022-23 year that may have been received by your superannuation fund after 30 June 2023 - these contributions may count towards your concessional contributions cap in 2023-24.

• Review salary sacrifice arrangements for the 2024-25 financial year to ensure an ‘effective salary sacrifice arrangement’ is in place.  

• Note: The concessional contribution cap is increasing from $27,500 to $30,000 in the 2024-25 year in line with indexation arrangements.

Tip…

• From 1 July 2022, no work test applies to salary sacrifice contributions, or personal non-concessional contributions. However, a work test still applies for individuals aged 67 to age 75 (up to the 28th day after the month they turn 75) who make personal contributions they wish to claim as a tax deduction. Therefore, for those who are within that age bracket who do not meet the work test (or work test exemption), utilising a salary sacrifice arrangement may be a tax effective way to contribute to superannuation.

Disclaimer: Please note that the above should not be construed as personal investment advice. Please consult with your financial advisor or accountant before taking any action.

Rick Maggi.