Cutcher | Insights and News

Things to think about before the end of the financial year

Written by Cutcher & Neale Accounting and Financial Services | 20 March 2022 11:31:00 PM

With the end of the financial year fast approaching, here are some things to consider:

Concessional Contribution Top Up: The concessional contribution limit has been lifted to $27,500 for the current financial year. Please be mindful that you will need to satisfy work test or work test exemption if you are aged 67 to 74 years.

Non-Concessional Contribution Cap: The non-concessional contribution cap has been lifted to $110,000 from 1 July 2021. Check with your advisor regarding your eligibility of making this type of contribution.

Contribution Reserving Consideration: People who need an additional deduction in their personal tax return may wish to consider contribution reserving strategy in June 2022.

Minimum Pension: 50% reduction still applies to the minimum pension of the 2021/22 financial year, please make sure you meet the reduced minimum pension requirement by 30 June 2022.

Eligibility for the Government Co-Contribution: If you are earning $56,112 and lower, you may be eligible to receive up to $500 Government Co-Contribution if you make $1,000 personal super contributions to your super account by 30 June. Check your eligibility with your advisor.

Important Dates

SMSF Annual Return Due Date: Your SMSF annual return for the 2020/21 financial year is due by 16 May 2022 if lodging through a tax agent. Please make sure the payment is made by this date if the SMSF has tax liability.

Quarterly Business Activity Statement (BAS) Due Date: Lodge and pay your BAS liability for quarter ended 31 March 2022 by 28 May 2022.

Director ID Application Due Date: Existing directors of corporate trustees need to apply for director ID by 30 November 2022 through myGovID. Paper or phone applications are also available to directors who cannot get a myGovID.

If you require any assistance please reach out to the C&N team.