Should you make a super contribution before the end of financial year?
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 28 May 2021. This week’s topic: Should I make a contribution to super before June 30?
With less than a month to go, now is the time to think about your super strategy and make a contribution to your superannuation fund. Many people leave making contributions to super too late and miss out on the benefits.
In this episode Luke provides his insights and tips into the factors you might think about before making a contribution to super.
Key highlights include:
- The money must be cleared in the super fund before 30 June to apply to this financial year.
- Check with your super fund to see when they are closing their contribution window for the financial year.
- Don’t presume you should make a contribution, it might not actually provide any extra benefit – talk to your adviser.
- Be aware of how much you can put into super to get a tax deduction and what your cap space is.
- Where can the money come from to make a contribution?
- A transition to retirement pension can also be used to fund additional super contributions.
- Is there ever a good reason to borrow money to put into super?
- Don’t forget you can also make non-concessional (non-deductible contributions) to super
- Downsizing legislation provides opportunity for older people selling their homes too.
- Don’t forget about Capital Gains Tax if you’re liquidating an asset to make a super contribution.
- Carry forward contributions also allow you to use unused contributions from previous years.
- Luke shares his strategy tips for making contributions – don’t forget about the ‘Notice of Intent’ with your super fund in you want a tax deduction.
- Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around super or retirement planning?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. The decision to invest can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and objectives and options.
Make an appointment to confidentially discuss super, investment, insurance or retirement. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday fortnight. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.