Give your super a boost before the end of the financial year
The financial year is ending, and you’re likely setting aside some time to get your finances in order and organise your tax return.
Don’t forget to think about your super too—now is a great time to give your retirement savings a boost and set yourself up for a financially secure future.
Make the most of your before-tax contributions cap
You could consider making before-tax (concessional) contributions up to the cap of $27,500, meaning your contributions will be taxed at the concessional rate of 15% (if your combined income and contributions are greater than $250,000—the concessional rate is 30% on those contributions that exceed $250,000).
Be careful not to exceed your before-tax contribution cap, because doing so can incur additional taxes. You can monitor your contributions and caps by logging in to your Member Online account.
Carry forward before-tax contributions
The government allows you to ‘catch up’ on contributions by allowing you to use the unused portions of your before-tax contributions cap in the previous five-year period (starting from FY19/20). To be eligible to carry forward before-tax contributions, you must:
- have a total super balance of less than $500,000 across all your super accounts (including those held with other super funds) as at 30 June of the previous financial year
- have contributed less than the before-tax contributions cap in one or more the previous five financial years (starting from FY19/20).
Visit the ATO website for more information about these rules.
Consider making after-tax contributions
Earned a bonus or pay rise? You could consider making an after-tax (non-concessional) contribution to put some of this money into super—either as a one-off or recurring payment up to the cap of $110,000.
Every little bit counts—after-tax contributions can earn money over time through compound interest.
We could all do with some extra money. If you make an after-tax contribution in the financial year, you could be eligible for the government co-contribution. If you’re earning less than $57,016 in this financial year and meet other eligibility criteria, the government will pay up to 50 cents for every dollar you add to your super in a financial year, up to $500.
You need to make sure we have your TFN, otherwise we can’t accept your government co-contribution.
UniSuper Advice is a multi-award winner
Everyone’s circumstances are different. Before deciding whether making extra contributions is right for you, consider talking to UniSuper’s award-winning advice team.
Our super consultants can provide information and general advice across a range of topics at no extra cost, whether you’re a UniSuper member or not. Book an appointment in-person, on campus, via video or over the phone, or call 1800 823 842.