Kris McCleland, SAA Senior Responsible Manager – shares some key Super strategies, which may help boost your retirement savings before June 30.

Financial markets have gone through a great deal of upheaval in the past two years, which makes it more important than ever to consider re-setting your superannuation approach this coming financial year.

In Australia, the average superannuation account lost $4000 in January due to a sinking share market and dropped further in February before recovering ground in March.

Superannuation is a long-term investment so there will be fluctuations over time, and it is important to remember that the long-term trend, is the most important factor.

Nonetheless, there are many strategies that people can consider using, which may help you get ahead of the curve.

TOP SUPER TIPS FROM SUPERANNUATION ADVICE AUSTRALIA

Concessional Super strategies to consider:

  • Adding a bit extra into your Super on a before-tax basis using the increase in the annual concessional contributions cap, which on July 1, 2021, was raised from $25,000 to $27,500
  • Carrying forward unused concessional contribution carry amounts from previous years to make further contributions (note: applies to balances less than $500,000)
  • Making a personal contribution for which you may be able to claim a tax deduction (note: these count towards your $27,500 cap)

Non-concessional Super strategies to consider:

  • If you have reached your concessional cap, consider taking advantage of the higher non-concessional (after-tax) contributions cap which last year was increased to $110,000
  • Using a bring forward arrangement to make a contribution up to $330,000 during 2021-22 (note: currently applies only to people under 67)

Other Super strategies to consider:

  • Salary sacrificing (note: discuss this with your employer as the ATO requires documentation)
  • Making a downsizer contribution from the proceeds of selling your home if aged over 65. You can contribute up to $300,000 ($600,000 for a couple) from the proceeds without meeting the work test
  • Making contributions into your low-income spouse’s account, which may result in a $540 tax offset (note: this will depend on your spouse’s level of income)

A financial reset shouldn’t stop at Super strategies. The end of financial year is also an ideal time to arrange a meeting with your tax accountant to maximise your deductions and put planning in place for the next financial year. As with other common expense deductions such as tools, equipment, union fees and charity donations, it is important to ensure you can substantiate your claims.

If you intend to claim a tax deduction for making voluntary Super contributions, you will need to provide your superannuation fund with a ‘Notice of intent to claim’ form within the relevant timeframes. You should seek advice from your taxation accountant prior to any Super rollovers or withdrawals, and before you lodge your Personal Income Tax Return.

If you have any queries or would like further advice, please contact us directly.

Information contained in this document is considered to be true and correct at time of publication. In addition, the information provided is general information only, and does not take into account any individuals’ objectives, financial situation and needs. Before acting on any information contained herein, you should consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs.***