Did you know the limits for contributing funds into superannuation increased from 1 July 2014?
Well you’re not alone.
Based upon some of the questions we have received since the Christmas break, there still seems to be a deal of confusion regarding how much a person can contribute to superannuation and claim a tax deduction.
From 1 July 2014, a person aged up to 49 years are able to contribute $30,000 into superannuation and claim it as a tax deduction.
This includes all employer contributions, including salary sacrifice arrangements, and personal contributions claimed as a tax deduction by a self-employed person.
This is the first change to this threshold since the threshold was reduced from $50,000 to $25,000 back at 1 July 2009.
For those taxpayers aged 49 years or over on 30 June 2014, the threshold increases to $35,000.
Again, this includes all employer contributions, including salary sacrifice arrangements, and personal contributions claimed as a tax deduction by a self-employed person.
Superannuation is still one of the best and easiest ways to reduce tax, but it’s not for everyone.
If you would like to discuss how you might utilise superannuation in your tax planning, please contact Ellingsen Partners.