If you’re making contributions to your superannuation, it’s important to be aware of the contribution caps. The Australian Taxation Office (ATO) has recently updated the way it displays information about the contribution caps, making it easier for users to see whether they’re at risk of paying unnecessary tax.
What Are the Contribution Caps?
The contribution caps are the limits on how much money you can contribute to your superannuation in a financial year. The caps are set by the government and are reviewed each year. If you exceed your contribution cap, you may have to pay extra tax. That’s why it’s important to keep track of your contributions and make sure you don’t go over the limit.
The ATO’s New Display
With this recent update, members can now use ATO online services to view and manage their non-concessional contributions (accessed via myGov). This will help users to keep track of their contributions and ensure they don’t go over the cap. Additionally, there is new ‘help’ content to help you understand and use this new functionality on ATO online services.
With Non- Concessional contribution cap, the information displays:
- the remaining cap amount for the financial year
- whether the member is close to exceeding the cap for the financial year
- if the member has exceeded the cap, it shows the amount by using clear labels and coloured indicators.
With Concessional contributions and carry-forward concessional contributions, the information display has been enhanced to:
- include coloured indicators and clear labels such as ‘eligible’ or ‘not eligible’, so members can easily view and manage their information.
The ATO’s online services now offer these new options to assist you in managing your super. There are also a number of valuable resources for anyone who wants to stay up-to-date with their super contributions.
Conclusion
If you’re nearing the contribution caps and want to avoid unnecessary tax, or unsure how it applies to you, it’s important to seek professional advice. The team at Wardle Partners Accountants & Advisors are experts in Self-Managed Superannuation Funds (SMSFs) and can help you stay within the limits while still maximising your contributions.
So if you’re looking for an SMSF accountant who will take care of everything for you, contact us today!
