There are 2 types of contributions that can be made into your superannuation.

Type 1: Concessional Contributions 

  • Paid by your employer or by you as a voluntary contribution
  • taxed at 15% (but if you made the contribution, you get a tax deduction off your personal income)
  • limit up to $25,000 per financial year (this includes your employer contributions and your voluntary contributions.

 

Type 2: Non-Concessional Contributions

  • Paid by you as a voluntary contribution
  • taxed at 0% (but you do not get any tax deductions from your personal income)
  • limit of $100,000 per financial year (you can bring 3 years forward so can add $300,000 one year and then have zero non-Concessional contributions for the following 2 years). For those over 65 you cannot use the bring forward option.

 

Notify Us Of All Personal Contributions

You need to notify us about any unaccounted for contributions. These can be…

  • If you personally have paid money into your super
  • If you used personal money to pay an invoice for the super and have not paid yourself back

 

When notifying us about a personal contribution please let us know the following…

If you used personal funds to pay for something for the SMSF (like establishment costs)…

  1. If you did not pay yourself back, are you going to?
  2. If you are not going to pay yourself back, how do you want to classify the contribution (concessional or non-concessional)
  3. If there is more that 1 person in the fund, who is contribution attributed to or what is the split (100% to member 1, 50/50, 70/30?)

 

An example would be if Joe paid using his own money to set up the SMSF and he did not pay himself back before the end of the financial year, we need to determine what has happened with the amount owed by the fund.

Joe would let us know one of the following…

  • Set up costs will be paid back in the following financial year, or
  • Set up costs will not be paid back, please apply the set up costs paid personally as a non-concessional voluntary contribution, or
  • Set up costs will not be paid back, please apply the set up costs paid personally as a concessional voluntary contribution

 

You can find more information about contribution types and caps here: https://www.ato.gov.au/super/self-managed-super-funds/contributions-and-rollovers/contribution-caps/#Concessional_contributions