End of Financial Year Super Strategies

The end of the financial year is an ideal time to get your super working smarter so you can save more for retirement. Many people tend not to worry about their superannuation at a young age, however to have enough for retirement, it is important to think about it earlier on.

Here are some strategies to increase your super contributions before the end of financial year:

Increase Tax Contributions

If you are employed, you can personally make super contributions from your pre-tax salary. You can also possibly claim a tax deduction from them too. In order to claim a deduction, you have to give notice to the Trustee of your super fund and get them to acknowledge the claim. Eligibility is dependent on your age, sources of income, any salary sacrifice and other employer contributions. Therefore obtaining this information beforehand is recommended.You will not only pay less tax, but also save more for the future.

Downsizing Opportunity

If you are 65 years old or older and wanting to downsize your family home that you have lived in for 10 years or longer, you (and your partner) can possibly contribute up to $300,000 from the sale of the home to your superannuation. The home downsizer contribution is a tax-free contribution, therefore it does not contribute towards your before or after-tax contribution caps. You can read more about the Home Downsizer here.

Government Co-contribution

Those who are middle to low income earners (with salaries less than $38,564 to a maximum of $53,564 in the 2019-20 financial year) can make contributions of $1000 or more of their after-tax salary. As a result, the government can ‘co-contribute’ up to $500 to your super. There is a certain criteria needed to be eligible for this co-contribution.You can read more about Government Co-contributions here.

Reminder

Although these strategies can be great ways to grow your super, the Government has strict annual limits on the amount you can contribute to your super each year. Before making extra contributions to your super, know how much you have possibly added to your accounts. If you need any support topping up your super before the end of financial year, please contact Wagtail Wealth today.

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