With the 30th June 2022 approaching, it is timely you attend to or be aware of a number of factual matters. 

CONCESSIONAL CONTRIBUTION CAPS FOR 2021/2022 (TAX DEDUCTIBLE)

The annual maximum amount is $27,500 for each member (there are some “catchup” concessions also available for those of you with balances of less than $500,000).  This is the total of all employer contributions, salary sacrificed contributions and personal deductible contributions.  Please note members 67 years and over must meet a work test to be eligible to contribute. 

All contributions should be cleared on or before Thursday, 30 June, 2022 and received and recorded then by the superannuation fund to permit a tax deduction.  Allow at least a week earlier.

NON-CONCESSIONAL CONTRIBUTIONS (NCC) FOR 2021/2022 (NON TAX DEDUCTIBLE)

The maximum $110,000 per annum after-tax cap, and the 3-year $330,000 bring-forward cap apply.   However, there are additional limitations based on individual superannuation balances.  Please note members 67 years and over must meet a work test to be eligible to contribute a maximum of $110,000. 

Member Balance 30 June 2021Maximum NCC
Less than $1.48 million$330,000
$1.48 million to less than $1.59 million$220,000
$1.59 million to less than $1.7 million$110,000
$1.7 million or moreNil

MINIMUM PENSIONS MUST BE PAID AND CLEARED BY THURSDAY 30 JUNE 2022

If you are in pension phase, use the table to calculate the minimum pension for 2022 as a percentage of a member’s pension account balance at 1 July, 2021.  You should have received a letter with your 2021 work papers showing the amount to pay.  Otherwise contact us.

AgePercentage 2021/2022Percentage 2022/2023
Under 65            2%2%
65-74            2.5%2.5%
75-79            3%3%
80-84               3.5%3.5%
85-89            4.5%4.5%

ANNUAL INVESTMENT STRATEGY FOR FUND AND AUDITORS

Trustees should review their WRITTEN investment strategy for a self managed superannuation fund by 30 June 2022.  The document should be updated and an appropriate minute of the trustee meeting recorded and signed.  Please ensure you recognise any changes in investments and strategy for the 2022 financial year.

SNAPSHOT OF RECENT SUPERANNUATION CHANGES AND OTHER COMMENTS

There have been recent changes announced by the government.

1.     Reduced Annual Minimum Pension

The table above shows the now reduced 50% minimum draw required for 2021/22.  The percentages continue in 2023 financial year.

2.     Superannuation guarantee rate for employees is currently 10%.  That rate increases by ½ % from 1 July, 2022 and ½ % each year after that until it reaches 12% by 1 July, 2025.

3.     Persons between 67 and 74 will not have to meet the 40 hour work test to make non-concessional contributions or salary sacrifice from 1 July 2022.  No change for personal concessional contributions.

4.     Expanded access to “downsizer” contributions from sale of family home.  The eligibility age will decrease from 65 years to 60 years from 1 July 2022.  The maximum contribution being $300,000 ($600,000 per couple) for a principal residence owned for 10 or more years.

As always, if you have any questions don’t hesitate to call the RFS Advice team.

This update is courtesy of Rede Accountants.