Enhance Your Super Contribution this EOFY!
As we approach June 30, amidst the flurry of End of Financial Year deadlines and activities, it is paramount not to overlook your superannuation strategies. We have highlighted five super contribution types which could allow you to enhance your superannuation contributions this Financial Year!
Enhance Your Super with Additional Concessional Contributions
Why consider this? Making extra concessional contributions, taxed at a mere 15%, offers a compelling opportunity to diminish your taxable income—redirecting funds from taxation to bolstering your retirement savings. With a current annual cap of $27,500, including employer contributions, this strategy allows you to proactively boost your superannuation savings for retirement.
Utilise Previous Unused Concessional Caps
Have you fully utilised your concessional contributions in prior fiscal years? Seize the opportunity provided by current legislation to make ‘catch-up’ contributions if your super balance remains under $500,000. By retrospectively tapping into unused caps over a five-year period, you can significantly augment your retirement savings. To discuss this strategy, please contact us for guidance.
Harness Non-Concessional Contributions for Strategic Advantages
For those within the low to middle income brackets, capitalising on the government co-contribution scheme proves a prudent choice. By making after-tax contributions, you not only amplify your super balance (up to $110,000 annually or $330,000 with the ‘bring forward’ rule) but may also qualify for a government subsidy, fortifying your financial security.
Empower Your Partner with Spousal Contributions
Is your partner a low-income earner? Consider contributing to their superannuation. This dual-purpose approach not only secures a tax offset of up to $540 but also fosters household financial resilience, aligning with a comprehensive long-term wealth strategy.
Optimise Contributions Through Spousal Splitting
In the realm of superannuation, collaboration yields mutual benefits. Explore the possibility of splitting up to 85% of your concessional super contributions with your spouse – a strategic long-term manoeuvre to ensure that you remain within the Total Balance Cap at retirement.
Don’t let the end of the financial year pass you by without making the most of your superannuation!
Note that this advice is general in nature and does not take into consideration your personal circumstances, financial goals and needs. To ensure that these your contributions are in your best interest, we encourage you to speak to one of our Financial Advisers.
