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6 super tips for the end of the financial year

With the fast-approaching end of the financial year for 2018-19, ensuring you’ve ‘ticked all the boxes’ can be a challenging practice. We’ve put together a few simple tips to help get you through.

If you are not sure if any of the below apply to you or if you have any questions, please don’t hesitate to book in an appointment here or email justin@cpwealth.com.au

  1. Maximise your retirement savings and reduce your tax by making personal deductible contributions to super.
    • Anyone who is eligible to make member contributions to super can claim a tax deduction of up to $25k (including employer contributions). Don’t forget to wait until your super fund has acknowledged your notice of intent to claim a deduction form prior to lodging your tax return.
  2. Don’t forget the government super co-contribution.
    • The government will deposit 50c for every $1 of eligible after-tax super contributions up to $500. The contribution reduces by $3.333 for every $1 that the individual’s income exceeds $37,697. This cuts out at $52,687
  3. Make a spouse contribution to receive the tax offset.
    • You can receive up to $540 when you make a $3,000 contribution to your spouse’s super fund where their income is $37,000 or less. This phases out at $40,000
  4. Taking advantage of super splitting.
    • Some funds allow you to split member contributions to help equalise super between spouses This can help (among other things) to:
    • Keep each member below the transfer balance cap of $1.6m
    • Improve your Centrelink position by allowing contributions to a younger spouse.
    • Accessing Super early by splitting to an older person.
  5. Don’t let your insurance lapse.
    • From 1 July 2019 super trustees are writing to members where the account has been inactive for 16 months or more to see if they want to maintain their insurance.
    • Make sure you read the super fund’s instructions on what you need to do IF you want to maintain the cover
  6. Bring forward expenses or losses.
    • Generally, you can pre-pay up to 12 months of expenses such as interest on an investment loan.
    • If you have realised a capital gain during the year you may want to bring forward a capital loss to offset this gain.
  • As always, the above is not advice and you should seek personal advice based on your circumstances as there are a lot of variables involved and rules change quite frequently.