Make Sure Your Super Is Contributed Into Your Super Fund By Friday 29th June
Make sure your super is contributed into your super fund by Friday 29th June (Not over the weekend – it is too late)
Whether it is a contribution for which a tax deduction (concessional contribution) is claimed or one that is sourced from after tax money (non concessional) everyone should by now be aware that super contributions are limited by contribution caps.
They should also be aware that the caps apply on a financial year basis, and that if amounts exceed the relevant cap, they will be classified as excess contributions and penalty tax will be charged. Given that the financial year ends on Saturday, anyone with SMSF who wishes to make a last minute contribution will need to get cracking to make sure a record of the fund contribution appears in the fund bank account by Friday 29th June 2012.
Background — A recent AAT decision highlights a 30 June trap
On 29 June 2009 Mrs Rawson’s employer submitted a contribution of almost $100,000 to her superannuation fund. The contribution was submitted by BPay. However, the fund’s records did not show the contribution being received until 1 July 2009. The fund reported the contribution as counting towards the 2010 contributions caps.
This resulted in a massive excess contributions tax liability. Mrs Rawson unsuccessfully appealed to the AAT.
This financial year 30 June is a Saturday so the dangers of delayed contributions are even greater.
Ensure that all contributions are made as soon as possible. Even Friday 29 June could be too late!