ATO Warning: $27,500 Super Deadline Expires Today – Don’t Miss Out!

Do you know the Australian Taxation Office (ATO) has set a $27,500 limit for super contributions each year? And guess what – the deadline to use it is today. So it’s an ATO warning, if we don’t act now, we could miss out on serious tax savings and a bigger retirement fund.

Many of us forget about super until it’s too late. But every dollar we add before the deadline can lower our tax and grow more for our future. This cap includes employer payments, salary sacrifice, and any extra money we put into super from our own pocket.

The ATO isn’t giving extensions. If we don’t make our move today, we lose this year’s chance. In this article, we’ll break down what this deadline means, who needs to act, and how we can still make it count, even with just hours left.

What is the $27,500 Cap?

The concessional cap is the limit on before-tax super contributions. It includes things like employer super guarantee, salary sacrifice, and personal contributions you claim as a tax deduction.

From July 1, 2024, this cap goes to $30,000, but that’s for the next year. Right now, for anything received by June 30, we must stick under the $27,500 limit.

Exceeding the cap means extra tax. The ATO will hit us with tax at our own rate, minus the 15% already paid by the fund. And if we have unused cap space from earlier years, we may be able to use it, with limits.

Why the Deadline Matters?

We lose unused cap space after June 30. Unless we meet the rules for carrying it forward, we can’t reclaim it.

Funding super before tax can drop our taxable income. That means a smaller tax bill, maybe even a refund. And super compounds over time. Even small amounts can help in the long run.

If we miss the deadline, contributions go into next year’s cap. We lose both tax help and growth potential. The ATO is clear: they won’t extend the deadline.

Who Should Act Now?

Anyone near the $27,500 cap should act today. That includes:

• Employees whose employer contributions plus salary sacrifice are pushing the cap.
• Self-employed people making personal deductible contributions.
• Those with a bonus or lump sum wanting to add to their super.

Also, if we have less than $500,000 in total super, we may use unused cap space from previous years.

Remember, according to the ATO warning, we must be under 75 years old (or pass work tests) to make personal deductible contributions.

How to Check Our Contribution Status?

First, log in to MyGov and check the ATO’s super dashboard. That shows reported concessional contributions.

Next, ask our fund or employer if there are payments still processing. Often, payments made in late June don’t arrive until July, which counts next year.

If we’ve topped up personally, check our bank and fund records. Confirm the money was received before 11:59 pm June 30.

ATO Warning: Last-Minute Action Steps

We can make a lump-sum payment today via BPAY, EFT, or online transfer. The key is that the fund must get the money by 30 June.

If we’re claiming a deduction, we must submit a Notice of Intent to Claim a Deduction to the fund and lodge it before we file our tax return.

Also, check if any late employer contributions are due. If we salary-sacrifice, make sure it’s set early enough that the fund receives it now.

Common Mistakes to Avoid

Some assume the employer’s June payroll counts this year, but that’s not always the case.

Others forget to include everything in the cap. Salary sacrifice, insurance premiums, and deductions all count.

Be careful not to confuse the concessional and non-concessional caps. They’re separate, and topping up one won’t affect the other.

Also, check our total super balance. If over $500,000, we may not carry forward unused cap amounts.

What Happens If We Miss the Deadline?

Then, any contributions go into the 2025-26 cap of $30,000. That means we miss one year of greater tax benefit and compounding growth.

If contributions push us over the cap, the ATO will include the excess in our taxable income. We pay tax at our rate, minus 15%. It may also affect Medicare, child support, or other taxes.

Final Words

Time is running out. We must act today to top up our super before the $27,500 concessional cap deadline hits. A small step now could mean lower taxes and a healthier retirement account. Let’s double-check our MyGov dashboard, talk to our employer or fund, and push through that extra contribution.

If we miss out ATO warning, we’ll wrap up later, but for now, let’s make it count. Our future selves will thank us.

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Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.