08 9442 0000
Self Managed Super Funds
Investment & Wealth management
Age Care Advice
Business & Personal Insurance
Working with Provident
Working with Provident
2020 Enjoy Factor
2019 Enjoy Factor
2018 Enjoy Factor
2017 Enjoy Factor
2016 Enjoy Factor
2015 Enjoy Factor
2014 Enjoy Factor
2013 Enjoy Factor
2012 Enjoy Factor
2011 Enjoy Factor
Your super checklist for EOFY
Protecting your loved ones
6 steps to help you feel more positive about your finances
Super bring-forward rules now apply to more people
Super contribution caps are going up from 1 July 2021
Three finance strategies for purchasing your next property
Working from home - what are the risks?
Your super checklist for EOFY
What are the top 5 global business risks and how could they affect you?
How to pay off your home loan faster
Market Update 5 March 20201
Australian house prices on the upswing - seven things to bear in mind about the Australian property
Research confirms the incredible value of Insurance brokers
Smart ways to save for a deposit
3 Golden rules that make saving for retirement easier
Do I need Professional Indemnity Insurance
Is it the right time to refinance an investment property?
Market Update December 2020
Federal Budget 2020-21 round-up
Market outlook Q&A - disconnect to real economy, growth v value, vaccines, property, gold, inflation
Cyber security will be a key risk for years to come
Come prepared: your home loan application guide
Essential checklist for the end of financial year
Diversification - why it matters more than ever
Phishing attacks - Will you take the bait?
Preserving retirement savings during COVID-19
Why it is NOT the time to cancel your insurance
A homeowner's guide to refinancing
Working from home because of COVID-19? Be wary of new Cyber scams
Federal Government stimulus package
What effects may the Coronavirus have on insurance?
The plunge in shares - Seven things investors need to keep in mind
How does using an Insurance Broker benefit you?
Why it's a good idea to get pre-approval
Three reasons why low inflation is good for shares and property
The China Coronavirus outbreak -economic and investment market implications
Why super and growth assets like shares really are long-term investments
7 tips to improve your financial wellness
How safe is your ID?
The hidden insurance risk lurking in our homes
Perth Property market signals the bottom of the market.
Commonwealth Seniors Card - qualifications, issues and considerations
Making downsizer contributions into super - what you need to know
Rates Fall - Lending Appetite Increases - Consumers Win!
The insurance implications of working from home
Record keeping in managing slip and trip risk goes digital
Are you underinsured?
Falling home prices & the impact on jobs - will the RBA react?
Navigating the small business lending market
RBA cuts rates to a new record low - Why? Will it Work? How low will rates go? and What does it mean
The nine most important things I have learned about investing over the past 35 years
The 2019-20 Australian Budget
4 Ways to avoid risk when buying property this Autumn
5 Life insurance questions you've always wanted to ask
6 Steps to get your money stuff together
Managing Driver Fatigue
Most older Aussies prefer home care over a nursing home
How much super should I have at my age?
How to protect your personal assets if your small business is sued
I'm young - do I need life insurance now?
Protect your home from water damage
The tradie’s guide to insurance
Setting up an emergency response plan
What are the 3 biggest living expenses for households?
Would you like to retire by 40?
Are you entitled to a tax deduction on personal super contributions?
The value of an insurance representative
Can I go back to work if I’ve taken my super?
I have health insurance, what else do I need?
What is the retirement age in Australia?
Make the most of your retirement entitlements
6 tips for retiring earlier
5 ways to a longer, healthier, happier life
How do I care for children and ageing parents?
Getting ready for retirement: 11 things to address
2017 has been kind to investors
How to retire, your way
Don't want to be retired and in debt?
Your super checklist for EOFY
The lead up to 30 June can be a good time to maximise tax benefits that may be available to you inside super.
If you’re keen on taking advantage of potential tax benefits available inside super, or are looking at ways to rebuild your retirement savings (for instance, you may have made a withdrawal as part of the early release of super scheme), the lead up to 30 June could be a good time to act.
Certain contributions, which we explore below, may have the ability to reduce your taxable income, or see you pay less on investment earnings, but remember there will be things to consider.
Contributions that could create tax benefits
Tax-deductible super contributions
You may be able to claim a tax deduction on after-tax super contributions you’ve made, or make, before 30 June this year.
To claim a tax deduction on these contributions, you’ll need to tell your super fund by filing out a notice of intent. You’ll generally need to lodge this notice and have the lodgement acknowledged by your fund, before you file a tax return for the year you made the contributions.
Putting money into super and claiming it as a tax deduction may be of particular benefit if you receive some extra income that you’d otherwise pay tax on at your personal income tax rate (as this is often higher).
Similarly, if you’ve sold an asset that you have to pay capital gains tax on, you may decide to contribute some or all of that money into super, so you can claim it as a tax deduction. This could reduce or even eliminate the capital gains tax that’s owing altogether.
If you’re a low to middle-income earner and have made (or decide to make before 1 July 2021) an after-tax contribution to your super fund, which you don’t claim a tax deduction for, you might be eligible for a government co-contribution of up to $500.
If your total income is equal to or less than $39,837 in the 2020/21 financial year and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500.
If your total income is between $39,837 and $54,837 in the 2020/21 financial year, your maximum entitlement will reduce progressively as your income rises.
If your income is equal to or greater than the higher income threshold $54,837 in the 2020/21 financial year, you will not receive any co-contribution.
If you’re earning more than your partner and would like to top up their retirement savings, or vice versa, you may want to think about making spouse contributions.
If eligible, you can generally make a contribution to your spouse’s super fund and claim an 18% tax offset on up to $3,000 through your tax return.
To be eligible for the maximum tax offset, which works out to be $540, you need to contribute a minimum of $3,000 and your partner’s annual income needs to be $37,000 or less.
If their income exceeds $37,000, you’re still eligible for a partial offset. However, once their income
reaches $40,000, you’ll no longer be eligible, but can still make contributions on their behalf.
Salary sacrifice contributions
Salary sacrifice is where you choose to have some of your before-tax income paid into your super by your employer on top of what they might pay you under the superannuation guarantee.
Salary sacrifice contributions (like tax deductible contributions) are a type of concessional contribution and these are usually taxed at 15% (or 30% if your total income exceeds $250,000), which for most, means you’ll generally pay less tax on your super contributions than you do on your income.
If you’re in a financial position to set up a salary sacrifice arrangement, this needs to be organised before the start of the new financial year, so talk to your employer or payroll division and have the arrangement documented before 30 June.
Important things to consider
• There are limits on how much you can contribute. If you exceed super contribution caps,
additional tax and penalties may apply.
• Contributions need to be received by your super fund on time (i.e. before 30 June) if you’re
planning on claiming a tax deduction, or obtaining other government concessions, on certain contributions when you do your tax return.
• A total super balance cap of $1.6 million is currently in place when it comes to making
non-concessional contributions. From 1 July 2021 that cap will increase to $1.7 million. If your total super balance exceeds this cap, you will not be able to make non-concessional contributions and may not qualify for certain other government concessions.
• A work test applies if you’re over age 67 and wanting to make voluntary contributions – unless you’re eligible to use the recent retiree work test exemption.
• There’s a limit on how much super you can transfer into a pension and upcoming changes could impact whether you move super savings now or later.
• The government sets general rules around when you can access your super, which typically won’t be until you reach your preservation age and meet a condition of release, such as retirement.
Superannuation rules can be quite complex, so make sure you speak to us about what might be right for you.
Before making extra contributions, make sure you understand and are comfortable with any potential risk you might be taking on.
©AWM Services Pty Ltd. First published April 2021
Back to News