Concessional Contribution Strategies
The strategy known as the 30 June suspense strategy applies where you
One way is via a contributions suspense account pre and post the 30 June period.
Basically a concessional contribution can be made to the fund’s suspense account prior to 30 June, and claimed as a tax deduction in that year.
However the amount is not credited to your member account until (at the latest) the 28th July, which is in the new financial year and when the amount will be counted as a contribution.
This way, the contribution will be counted against the later financial year’s contribution caps. A very neat solution.
Bill is 59 years old and wants to make a $15,000 concessional contribution to his self managed super fund and claim it as a tax deduction this financial year, as he is winding down work and will have a lower income next year. This means the deduction will be more valuable to him this financial year when he is earning more.
Unfortunately he has already used up all of his $25,000 concessional contribution cap limit this year.
So is there a way for Bill to get what we needs ?
This is what he does.
Note that the contribution isn’t added to the assessable income of the fund in the new financial year as it was already counted in the previous year.
As usual, check your trust deed that you are not prevented from doing this strategy. Note also that there may be some practical nuances around how this strategy is implemented in terms of SMSF accounting software. Check with your SMSF administrator that they can do it.