Understanding your super contribution limits can be complex and cap breaches can impact your long-term super savings.

Here are 6 top tips to help you navigate this complex area.

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  1. Verify information on myGov, but exercise caution: While myGov can provide valuable information about your super details, it's important to understand the source and timing of the data. In some cases, the information may not be up to date, so it's essential to cross-check with other reliable sources to ensure accuracy.
  2. Consider other sources of information: Account statements can be useful, but be aware that the Total Super Balance (TSB) at 30 June should be based on the exit value, not the closing balance.
    For Self-Managed Super Funds (SMSFs) with unlisted assets, wait for valuations to be completed before making contribution decisions. Seek professional advice to navigate timing requirements and potential consequences.
  3. Understand Personal Deductible Contributions: Be aware of the components of Personal Deductible Contributions, including employer contributions, salary sacrifice arrangements, and contributions to defined benefit funds. These contributions can be received throughout the year and consideration should be given to the timing as well as the amount received.
  4. Be mindful of downsizer rules: Ensure downsizer contributions meet all eligibility requirements to avoid treating them as personal contributions. Failed downsizer contributions may result in excess non-concessional contributions.
  5. Review salary sacrifice arrangements: Review existing salary sacrifice agreements and contribution strategies to prevent exceeding the concessional contributions cap. Consider the increase in the Superannuation Guarantee (SG) rate and the timing of salary sacrifice contributions.
  6. Account for employer-paid insurance premiums and insurance-only super accounts: Include all super contributions, including amounts paid by employers for account fees or insurance premiums. Contributions made to insurance-only super accounts will also contribute to the contribution caps.

By following these top tips and staying informed about the latest regulations, you can avoid excess contributions and protect your superannuation savings in the 2023/24 financial year. Remember to seek professional advice when considering your super contribution strategy.

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This article may contain material provided by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. To the maximum extent permitted by law: no guarantee, representation or warranty is given that the information or advice in this newsletter is complete, accurate, up-to-date or fit for any purpose.

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