Page 6 - Advice Matters - Byfields Wealth May 24

Supercharge your Super before

the clock strikes EOFY!

EOFY can have a tendency of creeping up on you… The calendar Now that we’ve covered off on making contributions to
ticks over to 1 June, suddenly, your inbox is bombarded with superannuation, let’s keep the momentum going with a - Five
EOFY sales, and you’re left thinking ‘Where has this year gone, it Step Super Health Check
feels like Christmas was only yesterday!’. 1. Check… that your Super is consolidated
Then you remember the superannuation tasks you’ve been Multiple accounts mean multiple fees, eating into your retirement
putting off. savings. Use the ATO’s online services to track down lost super
If this sounds familiar, then keep reading for our top ten tips to and consolidate your accounts easily.
making the most of your superannuation before EOFY.
Important Note – Make sure to check your insurance status
Let’s get started with - Five ways to boost your Super with before completing any consolidation!
contributions
2. Check… how you are invested
1. Consider additional Concessional Contributions Your super’s investment strategy should match your risk
(Pre-Tax Contributions) tolerance and retirement goals. Are you too conservative? Or
Why? Because these contributions are taxed at just 15%, too aggressive?
potentially lowering your taxable income. It’s like giving less to EOFY is a perfect time to review your investment options.
the taxman and more to future you!
Adjusting your investment mix can significantly impact your
You’re allowed up to $27,500 annually, including your employer’s super’s growth over time.
11% contribution. However, there is one exception to this…
3. Check… what insurance you have
2. Catch-up on Unused Concessional Contributions
Most super funds offer life, total and permanent disability, and
If you haven’t maxed out your concessional contributions from income protection insurance. Review your insurance needs
previous years, legislation now allows you to make ‘catch-up’ before EOFY to ensure you’re adequately covered without
contributions if your super balance is under $500,000. eroding your super balance unnecessarily.
Look back up to five years to see if you’ve got unused caps you 4. Check… to make sure you have a beneficiary
can access.
nomination
3. Take Advantage of Non-Concessional Contributions Super isn’t automatically covered by your Will, so nominate your
(After-Tax Contributions) beneficiaries to ensure your super goes to your loved ones as
If you’re a low- or middle-income earner, the government co- intended.
contribution scheme is a great way for you to contribute to 5. Check… your details to make sure they’re up to date
superannuation personally AND get a little bonus top up from
the government. This will ensure you’re kept up to date with important information
from your super fund.
It’s also a great way to add larger amounts to super, because
you’re allowed to contribute up to $110,000 per year (or $330,000 By taking action on these ten tips, you can feel confident knowing
if you are eligible to ‘bring forward’ future contributions). that you’ve made those most of your super for the financial year,
and that it’s in tip top shape for the year ahead!
4. Sharing the Super love with Spouse Contributions Alternatively, if you’ve gotten this far and are still stuck thinking
If your partner’s income is on the lower side, contributing to their about what happened to February (like seriously… does anyone
super could earn you a tax offset of up to $540. actually remember February, or March for that matter?), then
It’s a win-win: you help increase your family’s total super savings book in with a Financial Planner today and take the hassle out
while scoring a tax perk for yourself. of your EOFY planning.
5. Or consider Contribution Splitting with your It’s an investment your future self will thank you for!
Significant Other
You may be able to split up to 85% of your concessional super Sources: https://www.ato.gov.au/tax-rates-and-codes/key-
contributions with your spouse. superannuation-rates-and-thresholds “Key Super Rates and
Thresholds”, Australian Tax Office (accessed 22 March 2024)
This strategy can help even out your super balances, potentially
reducing the tax paid on super pensions in the future. It’s a
smart move, especially if one of you is taking a career break or
working part-time.

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MAY 2024