What contributions can be accepted by my SMSF?
Contributions can be divided a number of ways; mandated and non-mandated; employer and self-employed, concessional and non-concessional.
Mandated contributions are certain employer contributions that are required to be made on behalf of the member. Your SMSF can accept these contributions for fund members.
Non-Mandated contributions are all other voluntary contributions from sources such as:
There are some restrictions on a SMSF accepting these types of contributions based on the age of the member.
After age 75 non-mandated contributions cannot be made to the fund.
We are an independent family owned business that has specialised in Self Managed Superannuation (SMSF) for more than 30 years..
With all contributions there are now limits on the amount each member can contribution to their Superannuation fund.
Non Concessional Contributions
Non-concessional contributions are essentially contributions which do not form part of the assessable income of the fund. These are normally after contributions from after tax income. These may include:
This is by no means a definitive list but contains the main elements of non-concessional contributions.
The current non-concessional contribution cap for members aged 64 (or less) on 1 July of the relevant financial year, is either
For members aged 65 but less than 75 on 1 July of the relevant financial year, their annual cap is $150,000. Before making the contribution, they need to satisfy the work test in the year the contribution is made.
This category of contributions includes those contributions made by the employer on behalf of the member, or by the member themselves where the contribution is included in the assessable income of the fund. In this case the contributor, i.e. the employer or member claims a tax deduction for these contributions.
(Please note that member can only claim a tax deduction for their contribution where certain conditions are met.)
From 1 July 2012 all concessional contributions are subject to an annual limit of $25,000. Prior to this there were transitional rules which allowed members aged 50 and over to contribute higher annual amounts.
It is most important to be aware of these contriibution limits as very severe penalties are imposed for exceeding these limits.
Nothing in this website should be considered personal advice. The information is of a general nature and does not consider your personal needs and objectives or your financial situation. Before you proceed to make changes to your Superannuation you should consider seeking financial advice. Our related company Dunross Financial Planning Pty Ltd (Australia Financial Services Licence Number 237496) can help you with your financial goals and investment needs.
The Alan Skerritt Consultancy
Windsor Holdings Pty Ltd (ACN 010 018 041 ABN 12 862 040 559)
(Incorporated in Queensland) Trustee
Nothing in this website should be considered personal advice. The information is of a general nature and does not consider your personal needs and objectives or your financial situation.