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.