May 2016
Another end of financial year is fast approaching. By starting to prepare now, you might be able to avoid any last-minute rushing around that often coincides with the end of each financial year. We recently spoke to UniSuper Advice to get their top EOFY tips.
Review your living costs and update or create your budget for the upcoming year
An easy way to help grow your wealth is to know exactly where your money is going. Doing this enables you to take more control of your discretionary spending and help you pay off debts and free up cash so that you can top up your super. Check out our online budget calculator to get started.
Get more from your salary or bonus
You could salary sacrifice your pre-tax salary into super rather than receive it as cash. This could reduce tax on your salary or bonus by up to 34%. Super contributions are generally taxed at 15% rather than your marginal tax rate.1
Most members will typically have some space to top their super up and can take advantage of the before-tax contributions cap; however it might be best to talk to speak with an adviser to ensure you don’t go over the cap.
Please read our coverage of the 2016 Federal Budget for more detail on proposed changes related to this.
Make some after-tax contributions to your super
If you have some extra money in your budget or spare funds to invest consider topping up your super with it.
By making extra after-tax super payments, those contributions can benefit from compounding interest in a preferential tax environment and may help you achieve your retirement goals—just be aware of the rules around making after tax contributions and that your contributions are subject to preservation.
Top-up your super with help from the government
By making after-tax contributions into your super during the 2016-17 financial year and meeting certain eligibility requirements, you may be able to get a top-up from the Government. How much you get depends on your income and few other factors. If you're eligible, the Government will pay a co-contribution directly into your super account after you've lodged your tax return for the financial year in which you made the contribution.
For example, if you'r eligible and add to your super before 30 June 2016, you'll receive your Government co-contribution after you've lodged your 2016-17 tax return.
Learn more about the Government co-contribution.
Boost your partner's super and help reduce your tax (spouse contribution)
You and your spouse can boost your joint retirement savings, and maybe even get special tax treatment.
You can help your spouse grow their super by making after-tax contributions into their UniSuper account. If your spouse isn’t already a UniSuper member, you may be able to open a Spouse Account for them.
If you make up to $3000 in contributions to a UniSuper Spouse Account on behalf of your spouse, you may be entitled to an 18% tax offset (up to $540) if your spouse either doesn’t work, or earns a low income (less than $13,800 p.a.).
Please read our coverage of the 2016 Federal Budget for more detail on proposed changes related to this.
Prepare for a speedy tax return!
The sooner you can lodge a tax return, the sooner you could receive a tax refund (if you’re eligible). Get yourself as organised as soon as possible during the year and keep a tax folder for your receipts and documents. This will make the task less daunting and speed up your processing and lodgement time.
Review your super investment mix
Consider setting a date at the start of each financial year to review how your super is invested. You might prefer to make it around salary review time, to align with any super contribution changes for the year. Take a look at our investment choice tool to learn about our range of investment options, consider your risk profile, build your own portfolio and see a breakdown of growth versus defensive assets for your chosen investments.
More information
As a UniSuper member, you benefit from exclusive access to our in-house team of financial advisers. UniSuper Advice is solely dedicated to helping you with your finances, which means you get personal financial advice from a team with unique, in-depth knowledge of the Fund and the higher education and research sector. Find out more about what we offer.
1. There is a limit on the amount of concessional contributions you can make into super each financial year that are taxed at concessional rates. If you’re aged below 49 on 30 June 2015, you can contribute up to $30,000 of concessional contributions in the 2016-17 financial year. If you’re aged 49 years or over on 30 June 2015, your before-tax contributions cap is $35,000.