EOFY strategy - catch-up contributions

If an individual is in need of a tax deduction in 2020 and didn’t use their full concessional contributions cap for 2019, they may be able to use some or all of the unused portion.

To be eligible, the individual’s total superannuation balance (TSB*) must have been less than $500,000 on 30 June 2019.

Starting from 1 July 2018, unused concessional contributions caps are carried forward for five years. From 1 July 2019, an individual may utilise the unused portion of their concessional contributions caps provided their TSB was less than $500,000 at 30 June of the prior year.

Should you wish to discuss this or any SMSF issues, book in for a free 30 minute chat:
https://calendly.com/topsuperconsulting/discovery-call

*TSB = retirement phase value + accumulation phase value + any rollovers not otherwise counted – structured settlement contributions + (in certain circumstances) the outstanding balance of an LRBA

This information is of a general nature only and should not be relied upon as advice. It does not take into account your personal objectives, financial situation or needs.