21 May 2007 
 
The Institute of Chartered Accountants in Australia is concerned that the average taxpayer is not being made aware of the opportunities available for them to maximise their super, prior to the 30 June Better Super deadline. 
 
The Institute’s Manager Superannuation and Financial Planning, Hugh Elvy, says that with many of the super legislation changes coming into effect before the end of the financial year, the Institute’s priority lies in ensuring taxpayers are being informed of other options that are currently available to them. 
 
“The Institute will continue to work closely with the Government throughout the transitional period before 1 July 2007, to ensure taxpayers are fully educated regarding the legislative changes, as they come into play”, Elvy said. 
 
As such, the Institute highlights the following opportunities for taxpayers to maximise their super contributions: 
 
Increasing the crystalised component: 
 
The crystalised component of a taxpayer’s superannuation is made up of any undeducted contributions made before 30 June 2007, plus any component from before 1 July 1983, as well as any other concessional components. It is a fixed amount (calculated at 30 June 2007) and will be paid tax-free, to either the taxpayer or their beneficiaries. 
 
While taxpayers over 60 years will receive their benefits tax-free, upon death any payments (over $140,000) made to non-dependent beneficiaries will be taxed. 
 
To minimise this tax, taxpayers should consider maximising their crystalised component. This can be done by: 

1. Making sure all accounts reflect the earliest eligible service period (ESP). Under the new super rules, all benefits will be calculated on a fund-by-fund basis, so taxpayers should look to consolidate their funds into one account before 30 June.
2. Consider a recontribution. Anyone over 55 years who is eligible to take a benefit and make a contribution may consider doing so, as after 1 July 2007 all benefits taken will be proportioned between taxable and non-taxable amounts.
3. Think about making an additional undeducted contribution. If made with a pre 1 July ESP, this will result in a greater crystalised component.