”To achieve great things, two things are needed; a plan, and not quite enough time” –
Leonard Bernstein
The end of the financial year is fast approaching, but it is not too late to make a plan.
The end of the financial year marks an opportunity to:
1. assess your superannuation contributions,
2. maximise your tax benefit, and;
3. grow your super investments.
Being proactive and planning ahead can make for a much streamlined and stress-free EOFY
process. Below is a checklist to help you plan what needs to be done before June 30.
EOFY 22 Checklist
1. Get your contributions in before June 30.
Superannuation contributions are a great way to grow your assets in a tax effective
manner. If you want to have a super contribution counted in FY 21/22, ensure your
super fund receives it by the 30th of June 2022. Note this date is the date your
contributions should be received by your superfund, not when you should make the
payment, so make sure you send off your payment well ahead of the deadline.
2. Make a tax-deductible super contribution
Consider making a personal concessional contribution using your personal savings
or after-tax income so you can claim a deduction. To claim a deduction, you must
notify your super fund's trustee and get their acknowledgement. At tax time, it's
important to have all the information you need about your age, assessable income,
and other pre-tax contributions so you can make an appropriate and informed
decision.
3. Use salary sacrifice to top up your super
Salary sacrifice is an arrangement made with your employer to allocate some of your
pre-tax salary to be paid into your super account. This is an effective way to save for
your retirement as well as maximise additional tax advantages.
4. Check your eligibility for a Government co-contribution
The Government is also keen to ensure middle to low-income earners also benefit at
tax time. If you make after-tax personal contributions into your super, you may be
eligible for a top-up from the Government called a Government Co-contribution.
5. Investigate the spouse super contribution tax offset
If your spouse earns a low income or has had time off work, you may be eligible to
make an after-tax contribution to their super account. This will help boost retirement
savings and potentially claim a tax offset for yourself.
6. Check your caps
There are annual caps on how much you can put into your super account. That is why
it's important to check the total amount of both your concessional (pre-tax), and non-
concessional (after-tax) contributions across all your super accounts before making
a pre-30 June contribution.
Valor understands the ins and out of the superannuation tax concessions available to you,
and most importantly, how to maximise them. So as we approach the end of the financial
year, there is no better time to start being proactive and plan for the future.