With the end of the financial year fast approaching, we’d like to remind you about some potential opportunities for super contributions.

There are a number of strategies that may be of benefit in the lead up to 30 June:

Co-contributions: Individuals who are working and have Assessable Income + Reportable Fringe Benefits & Reportable Employer Super contributions under $57,016 can qualify for some matching from the government – it’s free money in your super!

Personal deductible contributions: those looking to reduce their taxable income can consider a contribution to super before 30 June. Previously reserved for the self-employed, this is now available to employees as well. Be mindful of the limits outlined below, and ensure a “Notice of Intent” is submitted to the super fund.

Employee Salary Sacrifice: Salary Sacrifice arrangements are a very effective means of reducing taxable income and boosting retirement savings. Applies to employees (including those working in their own company). Again, be aware of the limits.

Spouse Contributions: A tax rebate (maximum $540) may be available for after-tax contributions to super on behalf of a low-income spouse.

Some things to be mindful of:

Timing of payments: ensure contributions are made in time to be applied before 30 June, or they will likely be counted against next financial year’s limits.

Contribution caps: for the current financial year, Concessional Contributions (employer compulsory, salary sacrifice and member contributions where a tax deduction is claimed) are limited to $27,500 regardless of age.

Employer payment of insurances or fees can also count against these limits, in some cases being funded by additional contributions.

With financial markets at long-term lows due to the coronavirus, time may prove this to be a great opportunity to invest in a tax effective manner. If contemplating any contributions, please clarify your individual situation with your AGS financial planner or accountant.

As always please contact us for any advice or assistance.

Published : 26 Apr 2022