• Matthew Carberry

Sort out your super this EOFY


This year may be the perfect time to put a bit extra into your super before 1 July. New rules around super contributions are about to take effect on 1 July, so now is your last chance to make the most of the current contributions caps.

Make an after-tax contribution

From 1 July, the annual cap for after-tax or ‘non-concessional’ super contributions will reduce from $180,000 to $100,000. The ‘bring-forward’ rule, which allows you to make three years’ worth of contributions at any time during a three year period, will also be reduced from $540,000 to $300,000. Also from 1 July, if your total superannuation balance is $1.6 million or more, your annual cap reduces to nil, while your bring forward cap will reduce once your total superannuation balance is $1.4 million or more. So if you’re thinking of giving your super a boost, now could be a good time. Ask your financial adviser how you can make the most of the current caps before they change.

Start salary sacrificing

The annual caps for pre-tax or ‘concessional’ contributions will also reduce on 1 July. At the moment, you can contribute up to $30,000 a year – or $35,000 if you’re 50 or over any time during a financial year – but under the new rule, everyone’s cap will be $25,000. One way to take advantage of the cap is by salary sacrificing part of your income into super. But even if you don’t reach your cap before 30 June, salary sacrificing might be a strategy worth considering for next financial year.

Don’t exceed your caps

If there’s a possibility you’ve already gone above your concessional or non-concessional contributions caps, work out how much you’ve put into super so far this financial year. If you’ve put in too much, your financial adviser can help you take the excess out of super, so you can avoid paying a penalty.

Find other ways to contribute

If you’re a low income earner, you might be eligible for other types of contributions or government payments – for instance, a split contribution from your spouse, a government co-contribution or the Low Income Super Contribution (LISC). If you’re not sure what you’re entitled to, ask your financial adviser now so you don’t miss out before 30 June.

Book an appointment with a Verve Group Financial Adviser to be fully prepared for the financial year ahead. Call us on (08) 8120 4877 or email contact@vervegroup.com.au

This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count Financial Advisers are authorised representatives of Count. Information in this document is based on current regulatory requirements and laws, as at 17 May 2017, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.

#superannuation #individual

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