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Non concessional superannuation contribution

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My wife and I were both over 65 and had lived in our house for 20years when we sold it on the 30/10/2017 and we put the money it in the bank ,I have two super accounts can I put extra money we got for our house into super now.

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Anonymous

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Hi @Reddy-go

 

If your talking about making non-concessional contributions under the downsizer contribution scheme then the answer is no, because under the Eligibility for the downsizer measure the contract for the sale of your property must be made on or after the 1 July 2018.

 

Please also refer to this ATO ruling for a more details, in particular paragraph 10 ... LCR 2018/9

 

However, as you may be aware, you are both still able to make further non-concessional contributions provided your under the Total Super Balance  cap of $1.6 million, subject to certain rules.

 

ATO super 13 10 20

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Most helpful response

Anonymous

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Hi @Reddy-go

 

If your talking about making non-concessional contributions under the downsizer contribution scheme then the answer is no, because under the Eligibility for the downsizer measure the contract for the sale of your property must be made on or after the 1 July 2018.

 

Please also refer to this ATO ruling for a more details, in particular paragraph 10 ... LCR 2018/9

 

However, as you may be aware, you are both still able to make further non-concessional contributions provided your under the Total Super Balance  cap of $1.6 million, subject to certain rules.

 

ATO super 13 10 20

Former Community Support

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Hi @Reddy-go,

 

Thanks for posting.

 

As @Anonymous mentioned, if you sold your home before 1 July 2018 you won’t be eligible to make a downsizer contribution from the proceeds of the sale.

 

If you’re looking to make a non-mandated contribution to your super, you’ll need to check:

  • if your fund can accept your contribution, and
  • how much you can contribute.

If you’re 65 to 74 years of age, you’ll need to meet the work test for your super fund to accept non-mandated contributions. Non-mandated contributions are contributions which aren’t compulsory, such as personal contributions or spouse contributions.  To meet the work test, you need to be gainfully employed on at least a part time basis.  Your super fund may ask you to provide evidence to show you meet the work test.

 

If you’re 75 years old or more, generally your fund can’t accept any non-mandated contributions.

 

You can find more information about contributions your super fund can accept on our website.

 

If your super fund can accept your contribution, there are caps on how much you can contribute to super. These caps are based on the type of contribution you make – concessional or non-concessional contributions.

 

Concessional contributions are before-tax contributions and include employer contributions, salary sacrifice contributions and personal super contributions you claim as a tax deduction. For the 2018-19 financial year the concessional contributions cap is $25,000.

 

Non-concessional contributions are after-tax contributions and include personal contributions and spouse contributions. The non-concessional contributions cap for the 2018-19 financial year is $100,000.  However, if your total superannuation balance is $1.6 million or more at 30 June in the previous financial year, then your non-concessional cap will be nil.

 

If you exceed the contributions caps, you may need to pay extra tax.

 

You may want to seek independent tax or financial advice from a registered practitioner if you’re unsure if contributing to super is right for you and your financial circumstances.

 

Thanks, NicM.