The end of the financial year (EOFY) is fast approaching, and there’s no better time to get your superannuation in order. Whether you’re aiming to tighten your finances, maximise your tax benefits, or build a stronger financial future, this EOFY Super Checklist will help ensure you’re on track before the tax deadline.
Why EOFY Superannuation Deadlines Matter
EOFY is a critical time for superannuation as this period determines your contribution limit adherence, eligibility for potential co-contributions, and your financial position for the upcoming tax year. Missing key deadlines can result in penalties, missed opportunities, and unnecessary stress. Staying ahead ensures you’re making the most of your superannuation benefits.
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Review Your Super Contributions
Understanding your superannuation contributions is the first step in optimising your strategy. There are two main types to focus on:
- Concessional Contributions (pre-tax): These include employer contributions and salary sacrifice amounts, capped at $30,000 for the 2024-25 financial year.
- Non-Concessional Contributions (post-tax): For voluntary contributions made using after-tax income, the cap is $120,000 per year or $360,000 over three years if using the bring-forward rule.
Check that your contributions do not exceed these caps to avoid excess contributions tax. If you’ve under-contributed, consider making extra payments to boost your retirement savings and potentially reduce your tax bill.
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Check Your Eligibility for Government Contributions
The federal government offers incentives to help people grow their super:
- Super Co-Contribution: If you earn less than $60,400 and make after-tax contributions, you may be eligible for up to $500 in government co-contributions.
- Low-Income Super Tax Offset (LISTO): If you earn less than $37,000, the government may provide a refund of up to $500 on the tax paid on your concessional contributions.
Review your income and contributions to ensure you’re maximising these opportunities. Don’t leave money on the table that could go towards your retirement fund.
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Consolidate Your Super Accounts
Having multiple super accounts can mean unnecessary fees and complications. If you’ve worked multiple jobs or switched employers, it’s worth checking if you have super scattered across different funds.
Consolidating your super:
- Reduces administration and management fees.
- Makes it easier to track your account balance and performance.
- Helps you avoid unnecessary insurance premiums across multiple accounts.
Use the Australian Taxation Office’s myGov platform to quickly identify and combine your super accounts into one fund. Ensure that you choose the account offering the best fees, benefits, and investment options before making the move.
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Seek Professional Financial Advice
EOFY is also a great opportunity to consult with a financial adviser. Superannuation strategy can be complex, and a professional can help you:
- Determine your ideal contribution amounts.
- Optimise binding death benefit nominations.
- Decide on fund investment strategies tailored to your financial goals.
- Understand eligibility for deductions for personal contributions.
A financial expert can help you build confidence in your strategy, reduce risk, and ensure you’re getting the most out of your superannuation.
The Takeaway
Getting your EOFY super checklist in order isn’t just about ticking boxes and meeting deadlines. It’s about positioning yourself for a secure financial future while making the most of government benefits and tax advantages. By reviewing your super contributions, consolidating accounts, checking for government contributions, and seeking professional help, you’ll head into the new financial year more prepared than ever.
Don’t wait til the last minute! Start tackling these tasks today to maximise your super success before the tax deadline.
If you would like to improve your current investment strategies or are looking to start your investment journey, click here to organise a complimentary 20-minute phone call with an EPG Wealth adviser.