Superannuation is a hot topic as we roll into the last few weeks of June, and good financial advice can save you money and help you with your Retirement Planning. With many strategies available that can help you save efficiently and to make the most of your Superannuation.
Financial Advice and your Superannuation go hand in hand. As 30th of June approaches again there are several opportunities available to help you in your retirement planning. Two of these strategies that are especially effective in June.
Superannuation Contribution Caps and Tax Benefits:
One of the key aspects to consider is the contribution caps set by the Australian Taxation Office. For the 2022-2023 financial year, the concessional (before-tax) contribution cap is $27,500 for individuals of all ages. If you haven’t reached this limit, you may want to consider maximizing your concessional contributions to benefit from potential tax advantages and boost your superannuation balance. In addition, exploring the merit of non-concessional contributions prior to 30/6 can help in regard to maximising your “bring forward” non concessional amounts. In some cases, this can allow you to contribute $440,000 over a 4-tax year period.
Superannuation catch-up provisions:
In addition to the current year caps, there is the opportunity for some Superannuation account holders to contribute the missed caps of previous years. You can go back up to 5 previous years to make this up. This is often helpful in years that you may have a higher-than-normal income or capital gains. This is also available for kids in some cases. We recently used this for client who backdated maximum super contributions for his son back to age 14.
Other opportunities include Spouse contribution offsets, government co-contributions, transition to retirement planning and house downsizer strategies. Like always talk to a Boutique Financial Adviser to get appropriate advice for you and your family.
For Superannuation advice to assist with your retirement planning please contact us