There are significant rumours that the Budget in May will have an impact on superannuation benefits and contributions. Commentators are suggesting a hat trick hit to the high income earner. That being a further 15% tax on contributions (Div 293 tax), as well as reducing the income threshold from $300,000 to $180,000 and restricting contributions to an annual cap of $20,000 (presently $35,000 or $30,000 depending on age).
Another measure potentially being considered is abandoning the ‘bring forward non-concessional contributions’, presently set at $540,000, and allowing only the single year cap of $180,000.
If you were considering maximising contributions this financial year and have not already done so, it might be prudent to do something before budget night. Whatever happens will be a mystery until then, but as the old adage says there are only two things you can guarantee in life – one of those being taxes, so give us a call as we are always happy to assist.
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