I know I know, it’s only the middle of April, but somehow one day it’s the middle of April and the next it’s June 30 and the last thing anyone needs is to realise on the 1^st of July that you haven’t made your super contribution.  And believe me, you will realise it 1 minute after midnight on the 1^st, with no recourse!

In the main, June 30 doesn’t hold the importance that it did some years ago.  But for many self-employed or company directors the amount that is contributed to super is based on earnings for the year and often calculated by their accountants and typically this is done after the end of financial year.  So, its time to get proactive – NOW!

What’s important to know?

Firstly, ‘concessional caps’, that is the maximum amount that can be contributed to super by an employer or individual that can be claimed as a tax deduction.  This year the maximum concessional cap for everybody is $25,000 regardless of whether you are over age 50 or not.  So for everyone over age 50, who has over the last few years contributed higher amounts, beware!  Anything above the concessional cap will attract a further 31.5% tax.

Next ‘non-concessional caps’ (previously called undeducted contributions), the amount you can contribute personally from after tax funds and therefore cannot claim a tax deduction for the contribution.  The maximum non-concessional contribution that anyone can make is $150,000, unless they are using the ‘bring forward rule’.

What is the ‘bring forward rule’ and how can it be used?  It is a way to contribute sums greater than $150,000 in one financial year if you are under age 65.  Simply, it is the non-concessional cap for the current financial year plus the ability to ‘bring forward’ up to two further financial years’ non-concessional caps i.e. up to $450,000 in the same financial year.  The trap is that you cannot contribute further non-concessional funds to super for 3 years.

If you are planning to utilise the ‘bring forward rule’ it is imperative that you seek advice before making any contributions as there are strategies for splitting up the contributions that can reduce the 3 year impost.  E.g. If you have sold a property this financial year and have $500,000 to contribute, you might contribute $150,000 this financial year and a further $350,000 after July 1 (being next years non-concessional cap, bringing forward the 2015 non-concessional cap and $50,000 of the 2016 non-concessional cap).

Finally pensions.  There are 2 key things you need to be on the lookout for if you are in pension mode:

1. Ensuring you receive the minimum pension amount for your age prior to June 30 and
2. If you are in a Transition to Retirement pension ensuring you don’t exceed the maximum pension amount of 10% of the pension funds 30 June 2012 balance.

So yes, it is only the middle of April, but please start planning now.  It will save you a lot of stress as time goes by and June 30 looms closer.  It may also save you in penalties.

Most importantly, seek advice, especially if you are looking to use the ‘bring forward rule’.  Advisers can help you prepare for the end of financial year and reduce a lot of the stresses that come with trying to do it all yourself.