Leave a Comment:
(0) comments
Add Your Reply
With the end of the financial year fast approaching now is a good time to check that you have made the most of the opportunities available to you this financial year. It is also a good time to review your super strategies and put your plans in early to set yourself up for next year and ensure you get the most out of the tax-effective super regime.
You can contribute to your super in a number of ways.
Remember to allow 3 full business days for any BPAY transactions to be processed before 30 June 2013.
The Australian Tax Office (ATO) have recently released the YouTube video 100 people and their super. This 3 minute video will help you understand where you fit in with the millions of Australian’s that have super, along with other interesting super statistics.
| Your situation | Opportunities to consider |
| Employed Wanting to build your super tax effectively | Salary sacrificing could help boost your super and reduce your tax at the same time. Concessional (pre-tax) contributions (including Super Guarantee Contributions which you may receive from your employer) are capped at $25,000 for the 2012-13 financial year*. More. |
| Self employed Wanting to build your super tax effectively | Personal super contributions up to $25,000 in the 2012/13 financial year may be 100% tax deductible*.Contributing to your super could also lower any Capital Gains Tax (CGT) liability you may incur during the financial year (eg from the sale of assets). Speak to your tax adviser for further information. |
| Employed or self-employed and earn less than $37,000 this financial year? | You may qualify for a low income super contribution from the Government, which is essentially a refund of contributions tax (15%) on up to $3,333 of concessional contributions, with a maximum of $500 pa. |
| Employed or self-employed and earn less than $46,920 this financial year? Get a super boost from the government | If you make an after tax contribution to your super before 30 June 2013 you may be eligible for the Government co-contribution of up to $500. |
| Spouse earns less than $13,800 | Spouse contributions can make a difference to your partner’s superannuation and, depending on your partner’s income level, you may also receive a tax offset of up to $540. More. |
| More than one super account? Lost some super? | One call and we can help you bring all your super together, including any lost super – which could help you save on fees and make it easier to manage and keep track of your super. Contact AMP on 133 888 orconsolidate online. |
| Lump sum to invest | You could consider making a personal after-tax contribution of up to $150,000** during the 2012/13 financial year to help boost your super (until age 65, and/or from age 65 to 74 if you meet the work test).If you are under age 65, you may even be able to bring forward 2 years of non-concessional (after-tax) contributions, allowing you to make non-concessional contributions of up to $450,000 this financial year without exceeding the non-concessional contributions cap**. This can be effective where you have a lump sum, such as from an inheritance or the sale of a property. |
| Some things to consider from age 55 | |
| Your situation | Opportunities to consider |
| Want to reduce your work hours | You could supplement your income by drawing down on your super as a regular pension should you choose to reduce your work hours. Once you turn 60, the income you draw down from your super will be tax free. More. |
| Want to boost your super tax effectively while still working | A Transition to Retirement strategy could help boost your super without reducing your take home pay. This strategy involves increasing your salary sacrifice contributions, while supplementing your income with tax effective pension payments from your super. |
| About to turn 65 and have a lump sum to invest | Bring forward rule – this is your last chance to bring forward 2 years of non-concessional (after-tax) contributions and make non-concessional contributions of up to $450,000 in one financial year without exceeding the non-concessional contributions cap**. This can be effective where you have a lump sum, such as from an inheritance or the sale of a property. Once you turn 65, you will not be able to use the ‘bring forward’ rule. |
* The government has proposed to increase the concessional contributions cap of $25,000 to $35,000 (regardless of account balance) for individuals aged 60 or over from 1 July 2013, and for individuals aged 50 and over from 1 July 2014. This proposal has not yet been passed and as legislation currently stands the cap will remain at $25,000 from 1 July 2013.
** If you have used the ‘bring forward’ rule for non-concessional contributions in previous two financial years, your non-concessional contributions cap in the current financial year may be less than $150,000.
Note: The Super Guarantee Contribution will increase from the current 9% to 12% by 2019/20.
More detail around potential tax deductions can be found on the ATO website.
Log onto My Portfolio and try our interactive retirement simulator. You can try out different scenarios and generate a report that provides a number of strategies you can use which may help you to reach your retirement goals.
If you have a question or call us on 02 9600 8600.
By AMP financial planner Mohamed Said*
*Mohamed Said is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.
Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.
