The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;

2. Catch-up concessional contributions also start to matter

The 2019/20 financial year is the first in which the unused portion of a previous year’s concessional contribution cap (i.e. that of 2018/19) can be carried forward. To do so a client must have a total superannuation balance of less than $500,000 at the end of June 30, 2019.

The strategic opportunities brought about by this change are immense. Transition to Retirement strategies can be ramped up, Capital Gains Tax bills can be controlled by deductions, high taxable incomes can be reduced and bonuses can be added to super tax-effectively. Catch-up contributions just became a staple of tax-management strategies.

The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.

The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.