Financial Planning Weekly - Planning for EOFY – Super

Planning for EOFY – Super

With the financial year drawing near, now is an opportune time to begin organising your affairs. In the next two weeks, we'll explore a few things to consider in the lead up to 30 June.

Pension requirements – Are you on track to meet the minimum?

• If you are in-pension phase, make sure you have taken the minimum withdrawal amount by 30th June 2024. The amount is calculated based on; Your age as of 1st July, or the date you commenced your pension (if part way through the financial year) and; A % of your account balance on this date, based on the below table:

• Don’t forget the minimum percentages that have been halved for the past four financial years are now back to their original values.

Contributions - Have you utilised all your available amounts?

Concessional Contribution Caps (CC)

• This amount is currently $27,500 and includes amounts paid from an employer, amounts that you have salary sacrificed and those you have claimed a tax deduction for.
• If you have a total super balance less than $500,000 on 30th June of the previous financial year, you now have the option to use unused concessional caps for up to 5 financial years. This is referred to as the ‘Carry forward’ rule. Meaning in previous financial years, if you have not maximised your cap, you have access to these from the past 5 years. Note that from FY24/25 the concessional cap will increase to $30,000.

Non-Concessional Contribution Caps (NCC)

• If your total super balance as of 30 June of the previous financial year is less than $1.9 million, you can contribute NCC of $110,000 (indexed to 4x CC cap). The contributions can be in the form of personal after-tax contributions, spouse/child contributions or excess CC. Note: If you contribute to your spouse’s super, treated as an NCC, you may be eligible for a tax offset of up to $540 subject to eligibility conditions.

Bring forward rule

• Members under age 75 at any time in the financial year, can also bring forward up to 3 annual NCC entitlements subject to further requirements.

Government co-contribution

• If your total income looks to be less than $58,445, are under the age of 71 and have a total super balance of less than $1.9 million as of 30th June of the prior financial year, the government will automatically contribute up to $500 to your selected super fund, if you have made a personal NCC.

Spouse contribution splitting

• You may be able to split contributions you have already made to your own super, by rolling them over to your spouse’s super subject to further requirements. There are restrictions on the type and amount of contributions you can split but is a good way to boost your spouse’s super. The contribution is treated as a rollover and does not count towards either CC cap or NCC cap of the receiving spouse.

COVID-19 re-contributions

• If you received a COVID-19 early release payment from your Super account in the 2019/20 or 2020/21 financial years you are able to re-contribute up to that amount between now and 30 June 2030. The ATO form found here must be provided to your Super fund on or before the time of contribution. This re-contribution will not count towards NCC caps.

ASIC fees

The current fee for special purpose SMSF trustee companies is $63. You must pay the total amount on the invoice by the due date. Your invoice will have a few different payment options, including credit card and BPAY. You also have the option to pay this fee 10 years in advance at a discounted rate, with the fee being $436, equating to $43.60 per year. You can access the remittance form here.

Please contact us on 03 9268 1118 or [email protected] to discuss our services further.

Alex, Anu and the team.

This report has been prepared by Alex Henderson & Anu Souvannavong

Shaw and Partners, Morrissey Wealth Management

Level 36, 120 Collins Street

Melbourne VIC 3000

Morrissey Wealth Management (Authorised Representative Number 268130) is a Corporate Authorised Representative of Shaw and Partners Limited (AFSL 236048) (ABN 24 003 221 583)

This market update is issued by Morrissey Wealth Management an authorised representative (no. 268130) (the “Morrissey Group”) of Shaw and Partners Limited AFSL 236048. This market update is confidential and may be privileged. Unauthorised use, copying or distribution of any part of this document including attachments is prohibited.? The views expressed are personal to the Morrissey Group and do not necessarily reflect the views of Shaw and Partners. This market update has been prepared without taking into consideration any investor's financial situations, objectives or needs. Accordingly, before acting on the advice in this document, if any, you should consider its appropriateness to your financial situation, objectives and needs. Every reasonable effort has been made to ensure the information provided in this document is correct, but we cannot make any representation nor warranty as to the accuracy, completeness or currency of that information. To the extent permissible by law, no responsibility for any errors or misstatements is taken, negligent or otherwise.? Shaw or its authorised representatives may also receive fees or brokerage from dealing in financial products, see Shaw’s Financial Services Guide for information about the services offered by Shaw available at https://www.shawandpartners.com.au/.