v5.4 (July 2018) - 2018 Superannuation Changes

v5.4 (July 2018) - 2018 Superannuation Changes

CHANGES TO HOW YOU MODEL

CONCESSIONAL SUPERANNUATION CONTRIBUTIONS




This release will allow you to model the following types of superannuation contributions:

 

1.    Capped Salary Sacrifice Super Contributions

(model Salary Sacrifice contributions without exceeding the Concessional Contribution Cap)

 

2.    ‘Catch-Up’ Concessional Super Contributions

(If Total Super Balance is less than $500,000, any unused concessional contribution entitlement carried forward & used within the next five subsequent years)

 

3.    ‘Home Downsizer’ Super Contributions  

(model a “Home Downsize Contribution” of up to $300,000 from home sale proceeds)

 

Currently Salary Sacrifice (Concessional) Contributions can be modelled either via the client’s income, or via their superannuation fund.    


We have added 2 additional Salary Sacrifice options to the dropdown menu within the client’s income screen (See screenshot below), which will allow you to include salary sacrifice contributions without exceeding the Concessional Contribution Cap, or, make concessional contributions using any unused concessional contribution entitlement within the next five subsequent years. 




When entering a client’s income, concessional (pre-tax) superannuation contributions can be included by scrolling down the client’s salary income data entry screen to “Associated Super Contributions (Taxed in Fund)” – as shown in the screenshot above.


The 4 concessional contribution fields allow you to model contributions as follows:


1.       Salary Sacrifice – Max This Year Cap
Allows you to model contributions capped to the applicable Concessional Cap each year. 


In the above screenshot, I have modelled to “Max This Year Cap” from July 2020 until FY 2030. 

In the screenshots below, you will see that from the 2020/2021 financial year, salary sacrifice contributions have been commenced, up to the applicable Concessional Cap ($25,000 in FY 2021 and FY 2022, and increasing from FY 2023 to $27,500).  












2.     Salary Sacrifice – Max Available Cap
Allows you to model  'catch-up' contributions using all of the available Concessional Cap entitlement which has not been used for the previous five (5) years (from policy commencement of 1 July 2018).

The 2018/2019 financial year is the first financial year unused cap amounts can be accrued; with the 2019/2020 financial year being the first year catch-up contributions can be used.


In the above screenshot, I have modeled to "Max Available Cap" from July 2020 until FY 2030.

In the screenshots below, you will see that from the 2020/2021 financial year, salary sacrifice contributions have been commenced, up to the applicable Concessional Cap including any unused cap applicable at that time, and from the 2022 financial year, concessional contributions have continued up to the Concessional Cap applicable.






3.     Salary Sacrifice
  • Allows you to SET the specific amount of the contribution to be made.
  • Contributions will not be capped at the Concessional Contribution Cap.
  • Contributions MAY be subject to Excess Contributions Tax if the amount (when combined with Super Guarantee Contributions) exceeds the Concessional Contribution Cap.


4.     Employer Additional
  • Allows you to include additional Employer Contributions, for employees whose employer contributes more than the prescribed Super Guarantee Contribution


Home Downsize Contributions (HDC)


When entering a client's superannuation information, you can now enter details of a Home Downsizer Contribution - as shown in the screenshot below.




Simply enter:

  1.    the date you wish to make the contribution
  2.    the amount of the contribution (up to $300,000)
  3.    the account from which the money will be drawn

EXAMPLE:
In the below example screenshot I have included a $300,000 Home Downsizer Contribution AND a $300,000 lump sum Non-Concessional Contribution (using the 'bring-forward' rule):




The result below shows that no Excess Non-Concessional Contributions Tax is payable in this scenario (despite $600,000 being contributed in one year).





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