Time Sensitive: Supercharge Your Self-Managed Super Fund Before June 30

Growing your superannuation before the end of the financial year can provide substantial benefits for your retirement savings. With the financial year ending on June 30, there are several strategic actions you can take to maximise your super contributions. Here’s a guide on how to effectively grow your super before June 30.

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Maximise Your Concessional Contributions

Concessional contributions are the quickest way to grow your super. These contributions are typically made from your pre-tax income and include employer contributions, salary sacrifice arrangements, and personal contributions for which you can claim a tax deduction.

To make the most of concessional contributions:

• Top Up to the Cap: The concessional contributions cap is currently $27,500. Ensure you top up your contributions to this limit before June 30.
• Claim Tax Deductions: If you make personal contributions, complete the ATO intention to claim a tax deduction form if required. This can reduce your taxable income while boosting your super.

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Prepare for Changes on July 1

Be aware that the concessional contributions cap will increase to $30,000 starting July 1. Additionally, the super guarantee paid by your employer will increase from 11 per cent to 11.5 per cent. This change may affect your salary sacrificing arrangements, so it’s crucial to check with your HR department to understand any potential impacts.

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Utilise Unused Carry Forward Contributions

If your total super balance is less than $500,000, you can take advantage of unused carry forward concessional contributions from the past five years. Check your myGov account to see how much you have in unused contributions and consider topping up your super accordingly.

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Consider Non-Concessional Contributions

For those with a total super balance of less than $1.9 million, non-concessional contributions can significantly boost your super:

• Current Limits: The current annual limit for non-concessional contributions is $110,000.
• Bring-Forward Rule: You can use the three-year bring-forward rule to contribute up to $330,000 in one financial year, then make no further contributions for the next two years.

Starting July 1, these limits will increase to $120,000 annually and $360,000 under the bring-forward rule. For instance, you could contribute $330,000 before June 30 and make no further contributions for the next two years. Alternatively, you could contribute $110,000 this financial year and then $360,000 next financial year, totalling $470,000 within two months.

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Downsizer Contribution

For those over 55, the $300,000 downsizer contribution is an option if you sell your home. However, exercise caution if this contribution pushes your balance over the new $3 million tax threshold, as it could have significant tax implications.

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Final Tips

• Stay Informed: Keep abreast of changes in superannuation rules and caps to make the most of your contributions.
• Consult a Financial Advisor: A financial advisor can provide personalised advice tailored to your specific financial situation and goals.
• Plan Ahead: Proactive planning and contributions can ensure you maximise your super growth potential and secure a comfortable retirement.

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Conclusion

Looking to supercharge your super further? Have you considered SMSF property investment in new house and land builds? Think Supavest!

Get in touch with our team to learn more about our incredible property investment solutions, Supavest OCP and SAFE Property. 

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