Year-End Super Contributions & Minimum Pension Drawdowns

 With 30 June 2021 fast approaching, it’s time to think about concessional super contributions and minimum pension drawdowns.

Concessional contributions need to be received by the fund before 30 June 2021 to be deductible in this financial year. If you have a total super balance of less than $500,000 and do not use the full concessional contributions cap of $25,000, you can carry forward the unused amount and use it in subsequent financial years (to a maximum of 5 years).

Concessional contributions include employer contributions (including salary sacrifice) and personal contributions where a tax deduction will be claimed.

The non-concessional (after-tax) contributions cap for the 2021 financial year remains at $100,000 unless you are eligible to make “bring forward” contributions.

Please note for those clients that have minimum pensions, please be sure to take them prior to June 30 if you haven’t already done so.

Anyone making large superannuation contributions should exercise caution to avoid excess contributions.

Please note the caps for both concessional and non-concessional contributions are increasing by 10% from 1 July 2021 (for the 2021/22 financial year onwards). The annual concession contributions cap will increase from $25,000 to $27,500, while the annual non-concessional contributions cap will increase from $100,000 to $110,000.

As always, if you have any concerns or would like more information or assistance on the above, please speak to your MNH Advisory Services team member.

You are receiving this email as you are a client of MNH Advisory Services Pty Ltd. The information (including taxation) contained within this document is of a general nature only and neither represents nor is intended to be advice on any particular matter.