Boost Your Super Before June 30th

According to ASIC’s Moneysmart website, almost 50% of us establish a new financial goal at the start of 2025. The months coming up to June 30 offer a chance to examine your super level and consider methods to increase your retirement savings, even though the majority of financial goals involve debt repayment and savings.

Photo by Mathias Reding

Things You Should Think About First

You might be able to combine multiple super accounts into a single account if you have more than one. If you have insurance insider super, you may be in danger of losing it, so speak with us before making any changes. Consolidating your super could save you from paying various fees.

 

Ways To Increase Your Retirement Funds

The power of compound interest may allow you to significantly alter your retirement balance by making extra contributions on top of the super guarantee your company pays.

Concessional payments (before tax) are one option to increase your super before June 30.

These contributions can be made with after-tax money and deposited straight into your super account, or with your pre-tax pay through a salary-sacrifice plan with your employer.

Depending on your existing marginal income, you might pay less in taxes in addition to the rise in your super balance.

Verify your current year-to-date contributions to ensure that any further contributions you make don’t beyond the $30,000 concessional (before-tax) contributions ceiling, which goes into effect on July 1, 2024.

 

After-Tax Non-Concessional Contributions

Another name for this kind of contribution is a personal contribution. The contribution cap, which is set at $120,000 as of July 1, 2024, should not be exceeded.

Any extra contributions made after the $30,000 annual concessional contributions ceiling (before taxes) is reached are subject to taxation at your marginal tax rate less a 15% tax offset to reflect the contributions tax that your super fund has already paid.

A 47 percent tax will be applied to any contributions that exceed the non-concessional contributions cap.

 

Continue to Make Concessional Contributions (Catch-up)

This kind of super contribution could improve your balance if you haven’t made the maximum payments in the last five years or have taken a sabbatical from work. It’s especially beneficial if you’ve received a lump sum payment, such as a work bonus.

Only people with super accounts under $500,000 are eligible for these contributions, which are unused concessional contributions from the preceding five fiscal years.

Before making a catch-up payment, it’s crucial to get counsel because there are complicated and stringent regulations around this kind of contribution.

 

Contributions from Downsizers

You may be eligible to make a non-concessional super contribution of up to $300,000 per person, or $600,000 if you are a couple, if you are over 55, have owned your property for ten years, and are prepared to sell. After you get the money from the sale of your house, you have ninety days to contribute to your super.

 

Contributions From Spouses

Making exceptional donations to your spouse can be done in two ways:

• payments-splitting super benefits, which transfer payments you have previously made to your own super to your spouse’s super, or
• Make a direct contribution to your spouse’s super, which is considered their non-concessional contribution. If they make less than $40,000 annually, they may be eligible for a $540 tax offset.

Once more, this kind of gift is subject to certain limitations and eligibility conditions.

 

For assistance with a superannuation strategy that could help you have a fulfilling retirement and for additional information about your alternatives, get in touch with Success Wealth Group.

 

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