SUPER TIPS TO KICK OFF THE FINANCIAL YEAR
The start of a new financial year is a good time to review your finances and check you’re making the most of your super. Here are some simple ways members can get their super working harder and potentially save on tax.
1. Salary sacrifice
If you want to grow your retirement savings , with potential tax benefits, salary sacrifice may be worth investigating. The arrangement involves some of your pre-tax salary going into super, which in turn reduces your taxable income. While the super contributions are taxed at 15 percent, for many people that’s lower than their marginal tax rate.*
*Additional tax applies for those with income including concessional contributions of $250,000 p.a. or more.
2. Tax cuts and tax refunds
Anyone who received a tax cut on 1 July or is set to receive an annual tax refund and is eligible to do so, could consider depositing any surplus funds into their super account as a non-concessional contribution. Extra contributions may not be suitable for all members and you should consider consulting a tax professional to see if it is the right decision for you.
3. New super rules
Super rules change frequently and it is important to understand what any reforms mean for you. For instance, on 1 July 2024, the Superannuation Guarantee rate rose to 11.5 percent from 11 percent, which means you now have more funds automatically going into your super.
What’s more, on 1 July the concessional contributions caps also rose from $27,500 to $30,000, while the non-concessional cap rose from $110,000 to $120,000, allowing working Australians to contribute more to their super from both their pre- and post-tax salary.
4. Active Super Booster
Did you know that you can boost your super while you shop, thanks to Active Super Booster. It’s a program for Active Super Accumulation Scheme members that allows them to earn rewards on everyday shopping – from beer and wine to clothes, holiday bookings and more. Whenever you shop with one of our partner retailers,* a proportion goes back into your super.** Imagine the difference that could make over time.
Please note, Super Booster payment rewards are considered a non-concessional contribution.
5. Look for lost super and consolidate funds
Members who have had multiple employers, or changed name or address, may have lost track of their super. You can check for lost super by using mygov or calling the ATO’s lost super search line on 13 28 65.
For those with multiple super accounts, consolidating funds may be worth considering. Moving all your super into one account can make it easier to manage and save on fees. However, there can be consequences in consolidating funds which should be considered before a decision is made. Further information can be found here: Consolidate your super | Active Super
6. Non-concessional contributions
If you have a lump sum that you’d like to put into super, or would like to contribute from your ‘after-tax’ income to super, you may look at non-concessional, or ‘after-tax’, contributions. It is not uncommon for individuals who are closer to retirement to use after-tax or non-concessional contributions to build up their super savings.
Generally, members can now put up to $120,000 a year from their after-tax money into super before they have to pay any additional tax.
It is also possible to ‘bring forward’ up to three years’ worth of super contributions, but that depends on age, contribution caps and super balance sizes. Before making a non-concessional contribution, you should consider speaking to a financial planner to determine if the decision is right for you.
7. Book in for a Retirement Health Check
Want to know how you’re tracking towards retirement? Take our Retirement Health Check and see. It only takes a quick chat with one of our financial planners, and depending on the outcome, they can guide you on next steps to help you get better prepared. ~
Seek advice
If you require further advice on your retirement needs, then contact one of Active Super’s financial planners. Feel free to contact us on 1300 547 873 or make an appointment to see how we can help.~
*Partner Retailers are subject to change without notice. Depending on the Partner Retailer, rewards can be earned automatically when you shop with your linked debit or credit card(s) at a physical location at a Partner Retailer site or when you shop online through the Active Super Booster portal. To find out where you can shop to earn rewards, visit Super Booster map.
**For every dollar spent at a Partner Retailer, a proportion (between 0.5-20%, depending on the specific terms for the Partner Retailer) will be paid into your Active Super account in the form of a non-concessional super contribution. This is not redeemable as cash. Terms and conditions apply. Please note, you should consider your eligibility to receive any non-concessional contributions having regard to your own circumstances, including your superannuation account balance and any other contributions made to any of your superannuation accounts. Before making a non-concessional contribution, you should consider speaking to a financial planner to determine if the decision is right for you.
~Please note, should you choose to meet with one of our planners and decide to not obtain personal advice, no fee will be payable. However, fees may apply should you choose to proceed to personal advice. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice. LGSS Pty Limited (ABN 68 078 003 497) (RSE L0001243) (AFSL 383558) as Trustee for Local Government Super (ABN 28 901 371 321) (‘Active Super’) has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of personal advice to members of Active Super. Personal advice is provided by one of our financial planners who are Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available directly from the financial planner or by calling 1300 547 873. IFS is responsible for any advice given to you by its Representatives.
Any advice in this article is general in nature and has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (‘Active Super’). This article does not take into account your personal objectives, financial situation or needs. Before acting on it, you should consider the appropriateness of it having regard to these matters. If you would like advice that takes into account your personal circumstances, please contact a financial adviser.
