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7 Comments

  1. Bruve

     /  December 4, 2019

    Hi Liam, thanks for the response. I guess there will be a few Boomers who might need to adopt the strategies you mention. I thnk its a useful strategy to forgo the work test for those on lower balances, but as my super balance is above the $300k threshold, I will make the contribution in early March before I turn 65. Thanks again, Regards, Bruce

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    • Hi Bruce

      I have also updated the article to include all the changes to limits etc. and to include reference to the Work Test Exemption and Total Super Balance cap. Glad to help.

      Liam

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  2. Reblogged this on The SMSF Coach and commented:

    Updated limits for making contributions when turning 65. Includes the current concessional and non concessional caps, adds warning about Total Super Balance cap, the work test traps and explains the new “Work Test Exemption” which applies form 01 July 2019.

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  3. Bruce

     /  December 4, 2019

    Hi Liam
    I turn 65 in March 2020. Can I make a concessional contribution of up to $25,000 and receive the tax deduction in this FY? Are there any restrictions eg do I need to make that contribution before the day that I turn 65?

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    • Hi Bruce

      Yes a person can make a contribution this year up until their 65th birthday and claim a deduction with no restrictions
      If a person waits until after their 65th birthday to make the contribution then they must first meet the work test before making the contributions. So they will need to have worked 40 hours in any 30 day period from 01/07/2019 in order to make a contribution after their 65th birthday.

      There is also one new option for people next year.

      Work test exemption (which applies from 1 July 2019)
      Allows an individual’s super fund to accept voluntary contributions made by individuals ages 65 to 74 for an additional 12-month period from the end of the financial year in which they last met the work test, subject to their total super balance being less than $300,000.

      So if your balance in super is less than $300,000 and if you have met the work test in 2019-20 the you may be able to put further contributions in in 2020-2021 without meeting the work test in that year. Please get personal advice on this strategy as it is still new and it would be important to know your exact work history before providing personal advice,

      Hope this helps.

      Liam

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  4. Wendy Swinburn

     /  April 14, 2015

    I am 64 and turn 65 on 3rd June. I intend to contribute up to $540,000 before 3rd June. I am fully retired. I contributed $150,000 in the previous financial year. Do you agree this is OK? Thanks, Regards Wendy

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    • Hi Wendy, I can only offer general advice on here but based on the data provided I would agree that if a person in general put $150,000 in last year and now puts $540,000 before turning 65 they will be fine. I caution that you should check superfund records (all of them that could possibly have received a contribution) and ensure you did not exceed the $150,000 concessional limit last year. Even $1 over can trigger the bring forward and defeat your current strategy. Remember also if you have exceed the $35,000 concessional limit that the excess may be added to form part of your Non-Concessional cap. Pease check and double check by seeking personal advice from your adviser/administrator.

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