STRATEGY
Contribution cap strategy intricacies
The superannuation rules give individuals a significant amount of flexibility as to how they can make the most of their contributions caps. However, to do so successfully the relevant boundaries must be observed, Jemma Sanderson writes.
JEMMA SANDERSON is director and head of SMSF and success at Cooper Partners.
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Over the past few years, we have seen some substantial beneficial outcomes from a contribution perspective as introduced by the federal government. Some of these include: 1. The removal of the work test from age 65 to age 67 since 1 July 2021. 2. The removal of the work test for salary sacrifice and non-concessional contributions (NCC) to age 75 since 1 July 2022. 3. The extension of the bring-forward NCC contribution provisions up to the year an individual attains age 75 since 1 July 2022.
4. A reduction in the downsizer contribution age to 55. This is in addition to the medium to long-standing rules and strategies we have had for some years, such as: 1. Carry-forward concessional contributions since 1 July 2018. 2. Contribution reserving within an SMSF. 3. Withdrawal and recontribution strategies. This article will concentrate on the opportunities Continued on next page
