The Australian Taxation Office has announced the indexed superannuation contributions caps for the financial year commencing 1 July 2014 (“2014/2015 year”).

The amount of concessional (or “before tax”) contributions that may be made by a taxpayer to their superannuation fund has increased from $25,000 to $30,000 for the 2014/2015 year, while the amount of non-concessional (or “after tax”) contributions that may be made has increased from $150,000 to $180,000.  Further, the higher concessional contribution cap currently applicable to persons aged 59 and over (being $35,000) will from 1 July 2014 apply to persons aged 49 and over.

These changes mean that a person aged under 65 may bring forward the following two financial years’ non-concessional contributions and make total contributions of up to $570,000 in the 2014/2015 year without incurring any excess contributions tax (or $575,000 if the person is aged 49 to 64).

The allowable contributions are up to $100,000 greater than what is available in the current financial year.  This is good news for owners of commercial property who may be seeking to contribute all or part of their real property holdings (held directly or in a family discretionary trust) into their self-managed superannuation funds as a superannuation contribution.  

Stamp duty laws in most States and Territories provide exemptions from stamp duty for in specie transfers of property to a self-managed superannuation fund, where the transfer is made as a superannuation contribution.  The transfers need to be properly structured to enjoy the maximum stamp duty savings whilst at the same time ensuring that excess contribution tax is not inadvertently incurred.

Gadens can assist in devising strategies for staggered contributions of property from family structures to self-managed superannuation funds in a stamp duty effective manner within the allowable contribution caps. - See more at: