EOFY Super Checklist: Key Actions to Consider Before 30 June
The end of the financial year is almost here, which means it’s time for one last superannuation check-in before 30 June rolls around.
Our Senior Wealth Adviser, Dawn Thomas, recently joined The Advisory on Ausbiz to chat about some of the super opportunities and deadlines people should be thinking about before EOFY.
As Dawn put it, “It becomes a bit of a checklist at this point of the year.”
Whether you’re looking to top up your super, claim a tax deduction or just make sure everything is in order, now is the time to review your options and get organised.
Here are a few key areas worth focusing on.
SMSF Members: Check Your Pension Payments
If you’re drawing a pension from your self-managed super fund, one of the most important EOFY tasks is making sure you’ve taken your minimum pension payment before 30 June.
Missing the minimum payment can have tax consequences and may affect the fund’s tax-free pension treatment for the year.
Not sure whether you’ve met the minimum? Now is a good time to check with your accountant or adviser and make sure everything is on track before EOFY.
Check Your Super Contributions
Thinking about making an extra contribution to super this year? Don’t leave it until the last minute.
For most retail and industry funds, contributions need to land in your account before 30 June to count for this financial year. Processing times can vary between funds, particularly as more people rush to get their contributions in before EOFY.
Employers and personal contributors should generally aim for contributions to be made by around 22-25 June.
Don’t Forget Your Notice of Intent
If you’ve made personal contributions to super and plan to claim a tax deduction, there’s one extra step that’s easy to overlook: lodging a Notice of Intent with your super fund.
Without it, you may not be able to claim the deduction you’re expecting.
Timing matters here too. If you move your super to another fund or start a pension before lodging the notice, it can affect how much you’re able to claim.
Insurance premiums deducted from the account can also affect the amount that can ultimately be claimed.
Consider Government Co-Contributions
This is one of those opportunities that often flies under the radar.
If you’re a low or middle-income earner, making an after-tax contribution to your super could see the Government add up to $500 to your balance through the Government Co-Contribution scheme.
A contribution of up to $1,000 could be enough to unlock the maximum benefit, depending on your income and eligibility.
The maximum benefit is available for those earning up to approximately $49,000, with the benefit phasing out at $64,293. Parents may want to consider helping young adult children who have casual or part-time jobs.
Better still, there’s no additional paperwork required – if you’re eligible, the contribution will be automatically paid into your super fund after you lodge your tax return.
Review Spouse Contribution Opportunities
For couples, EOFY can be a good time to look at ways to build super together.
If your spouse earns less than $40,000, contributing to their super may provide a tax benefit – a $3,000 contribution can generate a tax offset of up to $540.
This can be valuable where one partner has taken time out of the workforce, works part-time or has a lower super balance.
Spouse Splitting: One For the New Financial Year
Not everything needs to happen before 30 June.
Many people don’t realise that, from July, eligible Australians may be able to apply to split up to 85% of their concessional super contributions with their spouse.
While it’s not an EOFY strategy, it’s worth keeping in mind if you’re looking to balance superannuation accounts between partners or improve flexibility when planning for retirement.
A Final EOFY Check-In
As Dawn highlighted during the interview, whether you’re a high or low income earner, there are opportunities to help grow your retirement savings and make the most of the super system.
Whether you’re topping up your own balance, taking advantage of government incentives or exploring strategies as a couple, a few small actions before EOFY could make a meaningful difference.
Want to hear Dawn’s full insights? Watch the Ausbiz interview here.
P.S. Read our piece Does 1% Really Matter in Super Returns?