It’s June which means winter has officially arrived, and hasn’t it come with a blast, as we all line up for our COVID and flu jabs. So stay warm and if you have a few minutes, how about considering some financial and superannuation tips, as normally put in the too hard basket, but getting a tax deduction (free money) is always worthwhile.
Here are some End Of Financial Year (EOFY) retirement strategies to consider:
1. Make a personal ‘tax-deductible’ contribution
If you have the available funds, you could make a one-off contribution into your superannuation fund and claim a tax deduction. This counts towards your concessional $25,000 per annum cap, and just to make sure you count what has already been paid into your fund by your employer already with SGC.
2. Consider adding to your spouse’s super balance
In many families, one works and one doesn’t or has taken time off work to raise children for example. This means the super account balances can be very different and obviously favour the one who has worked full-time. So consider submitting a request to split some of your superannuation contributions with your spouse to balance them out.
3. Increase your salary sacrifice contributions
Your employer pays 9.5% pa of your salary into your super fund as a salary sacrifice arrangement. You can also increase this amount as long as under your $25,000 per annum cap. The benefit is this is pre-tax salary you are contributing and can save you significantly on your tax as this is only at 15% against your marginal tax rate.
4. Check where your super is invested
Your employer pays 9.5% pa of your salary into your super fund as a salary sacrifice arrangement. You can also increase this amount as long as under your $25,000 per
Finally, while most don’t leave it till the last day, it is important like with any transaction, it is when it is received that counts, not when you make it. As if you do leave till 30th June, you might find the contribution arrives on the 1st July and therefore won’t count for this financial year. Always allow yourself a few days prior especially if keen on getting the tax deduction.
Article by Marc Bineham – Money coach, speaker and award-winning author of The Money Sandwich