Five months into the financial year 2014, now is as good a time as any to review your superannuation contribution arrangements.
Whilst everyone was limited to a contribution cap of $25,000 last year, in the current financial year, anyone who will be 60 or over will have that cap increased to $35,000. As arrangements such as salary sacrifice need to be prospective in nature, rearranging your contributions now can help ease any cash flow pressures that may arise by making changes later in the year.
Be careful when trying to maximise your contributions, consider all the contributions that are included in this cap including superannuation guarantee contributions. For example, if your base salary is $100,000, $9,250 will be contributed by your employer, your maximum salary sacrifice will be $15,750 or $25,750 if you will be over 60 during the year.