Estate planning gives you a final say
Welcome to the latest edition of our Insights.
More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s Moneysmart website. While most financial goals include saving money and paying down debts, superannuation should also be factored in as part of your overall saving strategy.
If you wish to discuss these topics, feel free to contact us.
All the best,
The Wealthy Me Team
The months leading up to 30 June provide an opportunity to review your current super balance to look at ways you could help boost your retirement savings.
If you have more than one super account, consolidating them to one account may be an option for you. Consolidating your super could save you from paying multiple fees, however, if you have insurance insider super, you may be at risk of losing it, so contact us before you make any changes.
When transferring super into one account, do your homework and shop around, your current fund may not be your best option.i
Compare the fees and charges of other funds and if you have insurance within your super, find out whether your insurance is affected if you move.
If you need to consolidate or transfer super funds, you can do this through your myGov account. If you’re unsure which fund is best suited to you, it’s a good idea to seek advice to make sure your new fund is appropriate for you, so give us a call and we’d be happy to help with that.
Making additional contributions on top of the super guarantee paid by your employer – whether big or small, could bring a host of benefits and make a big difference to your retirement balance thanks to the magic of compounding interest.
These contributions can be done from either your pre-tax salary via a salary-sacrifice arrangement through your employer or using after-tax money and depositing funds directly into your super account.
By arranging to have some of your pre-tax salary paid directly into your super, in addition to your super guarantee payment, you reduce your taxable income and therefore pay less tax. Your contributions are taxed in the super fund at 15 per cent, which may be less than your marginal rate.ii
Check to see what your current year to date contributions are so any additional contributions you may make don’t exceed the concessional (before-tax) contributions cap, which is $30,000 from 1 July 2024.iii
This type of contribution is also known as a personal contribution. it is important not to exceed the cap on contributions, which is set at $120,000 from 1 July 2024.iv
If you exceed the concessional contributions cap (before tax) of $30,000 per annum, any additional contributions made are taxed at your marginal tax rate less a 15 per cent tax offset to account for the contributions tax already paid by your super fund.
Exceeding the non-concessional contributions cap will see a tax of 47 per cent levied on the excess contributions.
If you’ve had a break from work or haven’t reached the maximum contributions cap for the past five years, this type of super contribution could help boost your balance – especially if you’ve received a lump sum of money like a work bonus.
These contributions are unused concessional contributions from the previous five financial years and only available to those whose super accounts are less than $500,000.
There are strict rules around this type of contribution, and they are complex so it’s important to get advice before making a catch-up contribution. To be eligible you:
If you are over 55 years, have owned your home for 10 years and looking to sell to downsize, you may be able to make a non-concessional super contribution of as much as $300,000 per person – $600,000 if you are a couple. While this strategy isn’t reliant on the 30 June deadline, you must make the contribution to you super within 90 days of receiving the proceeds of the sale of your home.
There are two ways you can make spouse super contributions, you could:
Again, there are a few restrictions and eligibility requirements for this type of contribution. So, seize the moment and avoid the set-and-forget approach to super. Taking action today could make a big difference to your retirement.
Get in touch for more information about your options and for help with a super strategy that could help you achieve a rewarding retirement.
Reviewing your superannuation fund’s performance regularly can pay off in the long term to ensure your investment suits your needs.
It doesn’t mean that you should constantly change your fund to chase better returns but rather check to see that your fund is performing well in comparison to other funds.
i Transferring or consolidating your super | Australian Taxation Office
ii Salary sacrificing super | Australian Taxation Office
iii Concessional contributions cap | Australian Taxation Office
iv, v Non-concessional contributions cap | Australian Taxation Office
