Superannuation is not only a great wealth creation tool for the longer term, it’s also a great tax minimisation tool. I am a big advocate in maximising tax deductable super contributions each year. The non concessional cap for this financial year in all age groups is $25k, that is $25k of cash payments that has actually hit your super fund or funds collectively between July 1 and June 30. So be careful not to go over !!
Spouse superannuation tax offset. Although not a great benefit it does provide something. The spouse superannuation tax offset allows a contributing spouse to claim an 18% offset, worth up to $540, for contributions made to an eligible spouse’s superannuation account. From 1 July 2017, the income threshold for the eligible spouse lifted to $37,000 and phases out at $40,000 so if this fits the income distribution of a couple and you want to make additional Non concessional contributions to super from say an inheritance, why not use it. For this tax year the spouse cap is $10,800.
Non Concessional contributions cap changes from July 1 2017 dropped back to $100,000 from $180,000 in fiscal 2017. You can still use the 3 year bring forward non concessional contribution in fiscal 2018 of $300,000. Although not a tax minimisation strategy it is certainly an important wealth creation strategy. There are many conditions to this and you need to seek professional advice before making a non concessional contribution this year.
Discretionary Family Trusts
If you would like to discuss further with a qualified adviser, feel free to book a consultation