Super fund members, who make concessional contributions of less than the cap of $25,000 in 2018/19, may be able to contribute more than the cap amount in 2019/20 and beyond. This could enable 'catch-up' super contributions to be made in future financial years. Concessional contributions include all employer contributions (super guarantee and salary sacrifice), personal contributions claimed as a tax deduction and certain other amounts.
The Government has released regulations to allow retirees aged 65 to 74 with 'total super balances' below $300,000 to make voluntary super contributions in the first year they don’t meet the ‘work test’ from 1 July 2019. This measure gives eligible recent retirees more time to make super contributions before they become ineligible. Currently, 65 to 74 year olds need to have worked at least 40 hours in 30 consecutive days in a financial year to be able to contribute to super.
Super fund members aged 65 or over may be able to contribute up to $300,000 per person to super from the sale of their home after 1 July 2018 if they meet certain conditions. These 'downsizer' contributions don’t count towards the concessional and non-concessional contribution caps and can be made without needing to meet the usual age, work and other contribution tests.
Small business owners may be able to claim an immediate tax deduction of up to $20,000 when purchasing certain assets before 30 June 2019.
For the 2019/20 and subsequent financial years, aged care residents will no longer be able to claim a portion of certain care costs (such as daily care fees and means-test fees) as a tax offset when they complete their tax return. This could increase the income tax payable by some aged care residents.
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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