Planning Idea Planning Stuff Super

Super gets an indexation boost

Its time to relearn your super rules… From 2014/15 the concessional contribution cap will increased for the first time to $30,000. So remember that in the 2014/15 year there will be a $35,000 cap for those aged 49 years or over on 30 June 2014, and a $30,000 cap for everyone else.

As a result the non-concessional contributions cap increases to $180,000 and  the non-concessional cap under the bring-forward rule over 3 years will be $540,000.

But this is the problem… If the three year bring forward of the cap is triggered in 2013/14 year, the two future year entitlements are not indexed. As such if you breach the $150,000 in the current year, the bring forward amount of $450,000 is locked in for this year and the next two years. This means you lose the indexation for the next two years.

So what ever you do, no more than $150,000 non concessional contributions in the 2013/14 year!

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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