Contributions to Self-Managed Super Funds (SMSF) for 2018

If you have a Self-Managed Super Fund (SMSF), 30 June 2018 is the final day to make member or employer contributions.

There are two types of contributions:

  • concessional (made by your employer)
  • and non-concessional (made by members)

There are some differences to be aware of for FY2018 since the last financial year, which include:

  • Concessional contributions are made by the employer (pre-tax)
  • $25,000 per annum threshold
  • age dependency no longer applies (whereas prior years it did)

From 1 July 2018, if you have a total super balance <$500,000 at the end of 30 June of the previous year, you can start to ‘carry-forward’ unused concessional contributions cap for five years.

Concessional contributions are pre-tax so it means your SMSF pays tax on these contributions at 15% tax rate.

Non-concessional contributions (NCC) are made by SMSF members directly into the Super Fund:

  • $100,000 threshold per annum (after tax)
  • non-concessional contributions are not included in the SMSF's assessable income
  • if you haven’t done so previously, you can elect to bring forward 3 years to contribute a total of $300,000 per person but then you would not be able to make any NCC for the next two years
  • if you exceed NCC threshold, the excess amount is taxed at the highest marginal tax rate which will be 45% FY2018.
Stephen Crouch