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:

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 concessional contribution 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 concessional limits.

Co-contributions: Individuals who are working and have Assessable Income + Reportable Fringe Benefits & Reportable Employer Super contributions under $58,445 can qualify for some matching from the government – it’s free money in your super! This requires a personal (non concessional) contribution.

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

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. A good way to check how much has been contributed so far is to log into MyGov and look for Super information in the Australian Taxation office section. While you’re there, check and see if you qualify for any carry-forward concessional contributions – this allows you to make use of unused limits from previous financial years.

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

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 : 23 May 2024