5 ways to boost your Super with contributions before EOFY
Looking to give your superannuation a boost before the end of the financial year? Look no further!
Follow these five savvy strategies to maximise your contributions and make the most of your superannuation savings:
- Consider additional Concessional Contributions (Pre-Tax Contributions)
Why? Because these contributions are taxed at just 15%, potentially lowering your taxable income. It’s like giving less to the taxman and more to future you!
You’re allowed up to $27,500 annually, including your employer’s 11% contribution. However, there is one exception to this…
- Catch-up on Unused Concessional Contributions
If you haven’t maxed out your concessional contributions from previous years, legislation now allows you to make ‘catch-up’ contributions if your super balance is under $500,000.
Look back up to five years to see if you’ve got unused caps you can access.
- Take Advantage of Non-Concessional Contributions (After-Tax Contributions)
If you’re a low- or middle-income earner, the government co-contribution scheme is a great way for you to contribute to superannuation personally AND get a little bonus top up from the government.
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 if you are eligible to ‘bring forward’ future contributions).
- Sharing the Super love with Spouse Contributions
If your partner’s income is on the lower side, contributing to their super could earn you a tax offset of up to $540.
It’s a win-win: you help increase your family’s total super savings while scoring a tax perk for yourself.
- Or consider Contribution Splitting with your Significant Other
You may be able to split up to 85% of your concessional super contributions with your spouse.
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.
With the end of the financial year fast approaching, now is the perfect time to take action and grow your retirement nest egg. Don’t miss out on the chance to supercharge your super before EOFY!
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
