There have been recent rumblings from Canberra that the government may be looking at dropping the cap for concessional contributions from $30,000 to $20,000 in this year’s May Budget.
Concessional contributions are the ones you make before your income tax is taken out. They include: the super from your employer, your salary sacrificed contributions, and any other contributions where you’ve claimed a tax deduction.
The SMSF Association has raised strong objections to any reduction in the amount of concessional contributions.
SMSF Association Chief Executive Andrea Slattery said that; “Reducing the cap will critically undermine the superannuation system’s ability to give people the opportunity to save for a self-reliant, secure and dignified retirement.”
Read more via this Self Managed Super Magazine article.
Whatever the outcome, the next few months are going to prove interesting in the SMSF space.
The information presented in this document was prepared for discussion purposes only and should not be relied upon for decision making. You should consult a professional financial adviser if you require additional information. This information has been prepared by Bishop Collins Wealth Management Pty Ltd – Financial Services (Corporate Authorised Representative (No 1242273) of Primestock Securities Ltd ABN 67 089 676 068 Australian Financial Services Licence 239180).