Government urged to not drop concessional contributions caps

The Institute of Public Accountants has urged the Government not to reduce the concessional contributions cap, in particular for people aged 50 and over.

The 2016 Budget included a reduction in the concessional contributions cap to $25,000, from 1 July 2017.

“The IPA does not support the reduction of the contributions cap to $25,000 and more so, we do not agree to the reduction of the current cap of $35,000 for individuals aged over 50 years of age,” said IPA chief executive officer, Andrew Conway. Read more...

Government should keep higher concessional cap for over 50s

Higher concessional contributions cap for people aged over 50, 2016 Budget, SMSF Association, Rice Warner, BGL Simple Fund 360The SMSF Association has released “compelling evidence” that the Government should keep a higher concessional contributions cap for older people contributing to superannuation.

Currently people aged 50 or over have a higher concessional contributions cap than younger people. However the 2016 Budget included a reduction in the cap to $25,000 for everyone from 1 July 2017. This measure is currently at the draft legislation stage.

SMSF Association CEO Andrea Slattery said research conducted for the organisation by Rice Warner “conclusively shows” that people only start making significant voluntary contributions to superannuation in their mid-50s. Read more...

Notice of intent to claim a tax deduction for super contributions

Notice of intent to claim a tax deduction for super contributionsIn order for an individual to claim a tax deduction for a personal superannuation contribution a Notice of Intent to Claim must be submitted to their super fund.

The notice of intent to claim requirement is created by section 290.170 of the ITAA 1997, which says that:

You must give to the trustee of the fund or the RSA provider a valid notice, in the approved form, of your intention to claim the deduction.

Hence the notice of intent to claim is sometimes called a s290.170, or section 290, notice.

How much is the Concessional Contributions Cap?

Update: note the potential changes announced in the 2016 Budget.

For the 2016/17 financial year the amount of the superannuation Concessional Contributions cap depends on the age of the member:

  • For people who were at least 49 years of age on 30 June 2016 the cap is $ 35,000
  • For other people the cap is $ 30,000