One of the easiest things in life is to get advice at one point, and think that’s the way things will always be going forward. If only that were true.
As we start into the new 2017-2018 financial year, it is an excellent time to review a number of things that change as time goes on, and a big one for this year is Superannuation contributions, as there have been quite a few changes to this area.
It is tempting from the media reports to assume this just affects the “big end of town” but this is not the case.
You may be one of many people who salary sacrifice into your superannuation account. If you are, it is important for you to review your salary package, as the total amount per year you can contribute to super under the concessional contributions cap is now just $25,000.
So what does that mean? It means that payments (contributions) made to your superannuation fund by your employer from your before tax income (salary sacrifice), plus your Superannuation Guarantee Contributions, need to total less than $25,000 for the financial year. If they total more than that amount, you may well find yourself paying tax on the amount above $25,000 at your marginal tax rate.
Everyone is different, so we recommend you take the time to have a chat with either Helen Hutley or Tracy Simpson here at W D Nicholls Chartered Accountants and review your current salary sacrifice amounts, to see if they are still going to work for you to their best effect.