A Super EOFY Playbook

The end of the financial year always arrives faster than expected, which makes now a smart time to check in on your super.

In a recent interview on The Advisory, Senior Wealth Adviser Dawn Thomas shared some practical ways Australians may be able to make the most of their super before 30 June – from contribution strategies to government incentives.

Here are some of her key takeaways.

Check your contribution limits

If you’ve been salary sacrificing into super, now is a good time to make sure you’re still within the annual concessional contributions cap. This cap includes your employer’s super contributions as well as any extra pre-tax contributions you’ve arranged through salary sacrifice.

Dawn says that a quick check with your payroll team can help you understand how much has already gone in this financial year and whether you’re getting close to the limit.

“Unfortunately salary sacrifice isn’t something you can undo,” says Dawn. “Your tax benefit gets processed immediately. But to control this through the year, you could do a combination of salary sacrifice and something called personal deductible contributions.”

You may be able to contribute more than you think

If your super balance is under $500,000, you may be eligible to make use of unused concessional contribution caps from the past five years.

This can be a valuable strategy for people who have had fluctuating income, taken time out of the workforce, or simply haven’t contributed as much to super in recent years.

Rules and eligibility apply, but it’s an opportunity many people don’t know about.

Couples can use super strategically

Super doesn’t have to be approached as a solo exercise. Dawn highlighted a couple of ways partners may be able to work together to strengthen their long-term financial position.

One is spouse contributions, where contributing to your partner’s super may make you eligible for a tax offset, depending on their income. “If their income is less than $40,000 that’s eligible for you to do,” says Dawn. “It’s a quick win on both parts”.

Another is contribution splitting, which may allow you to transfer some of your concessional contributions into your spouse’s super account to help build their balance over time.

Don’t overlook the government co-contribution

For lower-income earners, Dawn explains there’s an “awesome” super boost available.

The government co-contribution scheme may allow eligible Australians to receive up to $500 from the government when they make a personal after-tax contribution to their super.

“The Moneysmart website is a great resource to understand what your contribution could be,” Dawn says.

It can also be a useful opportunity for younger workers just starting out, with parents sometimes helping children understand how to take advantage of the scheme early.

The takeaway? Super can often feel overwhelming to think about – but a few well-timed decisions before this EOFY could make a big difference to your financial future.

Watch the full interview here: The Advisory – A Super EOFY Playbook

P.S Want to know more about maximising your super? Watch Dawn’s video Can A Super Decision Make You $100,000 Wealthier?