Tuesday, October 29, 2013

Accelerating superannuation contributions




In recent times, particularly given the ongoing adjustments to the limits for concessional superannuation contributions, the way in which to maximise non-concessional contributions has been an area of focus.
The table that we often use, which summarises most of the main strategies available in this regard is set out below.

Member age
61
62
63
64
65
Total
Contribs
Financial year
2013/14
2014/15
2015/16
2016/17
2017/18
Scenario 1
$150,000
$150,000
$150,000
$150,000
$150,0001
$750,000
Scenario 2
$150,000
$150,000
$450,000
nil
nil
$750,000
Scenario 3
$150,000
$150,000
$150,000
$450,000
nil
$900,000
Scenario 4
$450,000
nil
nil
$450,000
nil
$900,00
Scenario 5
$150,000
$450,000
nil
nil
$450,0002
$1,050,000
Scenario 6
$150,000
$150,000
$150,000
$150,000
$450,0001
$1,050,000
  1. Assuming contributions are made prior to member’s 65th birthday or made after reaching age 65 and the member continues to satisfy the required gainful employment test. 
  2. Assuming contributions are made prior to member’s 65th birthday or the member was aged 65 at any time in the year and continues to satisfy the required gainful employment test of the contributions were made after the member’s 65th birthday. 
Until next week.