EOFY REMINDER 2020

Lump Sum (one off) Withdrawals

If you are planning any large acquisitions in July that will require drawing down on your investments, superannuation or pension accounts, please be aware that most investment managers delay redemptions in the first weeks of the new financial year as they finalise their end of year accounts.To avoid any issues, we recommend you redeem any cash that will be needed in July, by no later than 15th June 2020 – or if possible, defer any large purchases to late July.PLEASE NOTE: All your regular payments (pensions etc.) will go through as normal. This temporary hold only relates to one off withdrawals.

Contributions

If you were planning to make superannuation contributions before the end of this financial year, please allow 5 to 7 working days for your superannuation contributions to be processed by your super fund.We recommend that if you are wanting to make additional super contributions for this financial year please do so by the 19th June 2020.Please see following information about the superannuation contribution caps that are applicable for the 2019/2020 year:

Concessional Contribution Caps for 2019/2020 (Contributions that are Tax Deductible):

The annual maximum amount is $25,000 for each member.  This is the total of all employer contributions, salary sacrificed contributions and personal deductible contributions.  Please note members 65 years and over must meet a work test to be eligible to contribute.All contributions should be cleared on or before Friday, 26 June 2020 and received by the fund to permit a tax deduction.

Non Concessional Contributions for 2019/2020 (Contributions not eligible for a Tax Deduction):

The maximum $100,000 contribution per annum after-tax cap, and the 3-year $300,000 bring-forward cap.   However, there are additional limitations based on individual superannuation balances (see below).Please note members 65 years and over must meet a work test to be eligible to contribute.  The bring-forward rules are not available after turning 65.

Super Balance 30 June 2019Maximum
Less than $1.4 million$300,000
$1.4 million to less than $1.5 million$200,000
$1.5 million to less than $1.6 million$100,000
$1.6 million or moreNil

If you have any questions in relation to the above, please don’t hesitate to contact our office and speak to your client manager or adviser and we would be happy to help.

  • 17/06/2020