We are hurtling towards the end of another financial year. What a great time to get your house in order?! After recent legislative changes, super remains a low-tax savings environment designed to fund your retirement.
We have put together a useful 10-step super checklist that will help you maximise your entitlements. Check out the first five steps here. These are the final five steps:
- Spousal contribution
If your spouse earns less than $10,800 and you make a $3,000 non-concessional contribution to their super, you may be eligible for a tax rebate of up to $540.
- Super splitting
If you or your partner take time off work or reduce working hours to look after the kids, keep the super contributions rolling by splitting. It allows the working spouse to have up to 85% of their super contributions placed into the account of the non-working spouse. It helps keep a couple’s accounts evenly balanced and is simple to implement.
- Transition to retirement
If you’re aged between 57 and 64, a Transition to Retirement (TTR) strategy might be right for you. Despite recent budget announcements, TTR remains a solid strategy that lets you draw tax-effective funds from your super while you’re still working. You can then use your normal income to make concessional contributions to super. The simplest way to think about it is that you’re recycling your retirement benefits to reduce tax and boost super.
- Set up a self-managed super fund
For those of you with more than $250,000 in accumulated super, a self-managed super fund might be the way to go. The Australian Tax Office has helpful videos: head to www.ato.gov.au/super/self-managed-super-funds and search for “SMSF videos”. It’s very important to get the right advice before proceeding.
- Seek advice from a professional
Financial advice can help you identify and plan to achieve your financial goals so you can enjoy the lifestyle you want. An adviser will help you assess your current circumstances, identify your goals and priorities, and recommend financial strategies and products that will help you reach your goals.
So there you have it: the essential 10-point super checklist to tick-off before 30th June 2017. If executed consistently every year, it can make a big difference over the long-term. It is never too late to start.
Please note, this article is for general advice purposes only. It has not taken into account your personal circumstances or financial goals. If you wish to get more personalised advice tailored to your circumstances and financial objectives, please contact our friendly staff today.