For any super members who are in accumulation phase, now is the time to think about your super contribution strategies before the close of the financial year.
For most of us, in each financial year we can make concessional (before-tax) contributions up to $25,000 and non-concessional (after-tax) contributions up to $100,000. However, there may be scope to make additional contributions before June 30, depending on your circumstances.
To learn more about the various contribution strategies, over and above compulsory employer contributions, visit the links below.
Carry-forward concessional contributions
It used to be a case of ‘use it or lose it’, but the carry-forward concessional contributions rules now give more flexibility to prevent people falling behind in their super savings.
Personal deductible contributions
If you find yourself with a bit of extra money, putting it into super could be a great option. You’ll benefit from super’s tax-friendly environment and may have an opportunity to claim a tax deduction at the same time.
After-tax contributions and the bring-forward rule
Make up to three years of after-tax contributions (up to $300,000) using the ‘bring-forward’ rule . The rules can be complicated, and it’s important to understand how they work before using them.
Government super co-contributions
If you’re a low- to middle-income earner (earning up to $54,837 per year), and you make an after-tax contribution of $1,000, the federal government will contribute an additional $500 under the super co-contribution scheme.
Spouse super contribution tax offset
If your partner is earning a low income then it’s likely they’re not earning much super. This means their super can fall behind. The good news is, there are ways you can help your partner’s super continue to grow.