Superannuation- Points to consider and action prior to 30 June 2008?

1. Governement Co-Contributions - If you have personal assessable income below the $58,980 threshold for the 2008 financial year you may be able to qualify for the government co-contribution scheme. You can receive the government co-contribution if you make personal (non-concessional) contributions up to $1,000 before 30 June to a complying superannuation fund and you are no more than 70 years of age as at the end of the financial year. Note that 10% of more of your total income must be derived as active income ie. income from running a business, eligible employment or a combination of both to qualify.
   
   
2. Non-Concessional Contributions - If you have surplus funds outside of superannuation you may consider making after tax contributions to your superannuation fund prior to 30 June. If you are under age 65 you can make non-concessional contributions to your fund up to $150,000 per year or bring forward the following two financial periods and make a one of $450,000 contribution ensuring that no further after tax contributions are made for the next two financial years. If you are limited by these caps you may consider making a $150,000 contribution before 30 June and further $450,000 contribution early July 2008. If you are aged between 65 and 74 years of age you are limited to the $150,000 per annum non-concessional contribution only and note that you must meet the work test of being gainfully employed for at least 40 hours within 30 consecutive days in the financial year to make a contribution.
   
   
3. Concessional Contributions - If you are salary sacrificing, self employed, or running your own business you may consider making before tax contributions of up to $50,000 a year into your superannuation fund prior to 30 June or if over age 50 you can take advantage of the transitional before-tax contribution limit of up to $100,000 per annum.
   
   
4. Pension Payment Obligations - Trustees should ensure that any members in pension phase throughout the 2008 financial year have infact met there pension payment obligations for the financial year. Clients with Account Based Pensions must meet their minimum obligation whilst allocated and transition to retirement pensions must fall between their minimum and maximum pension range. Failure to do so is a breach of the SIS Act and may see your fund being non compliant with the Act.
   
   
5. Commencing Pensions - If you are planning to commence a pension at the beginning of the 2008-09 financial year, pension minutes between the trustee and member should be documented and signed prior to 1 July 2008.
   
   
6. PAYG Withholding Obligations - For members who received pension payments whilst under 60 years of age in the 2008 financial year, your fund will have an obligation to withhold any pension tax liability and make payment to the ATO with the June Quarter Activity Statement. Any tax withheld by the fund will count towards the pension member's 2008 annual pension.