What you need to know this End of Financial Year

Jun 10, 2023 | Financial coaching, Superannuation

The end of financial year is almost upon us and there are opportunities which you may be able to use and some changes for next financial year.

Contributions you should know about

For the 2022/23 financial year and beyond the work test has been removed and you are able to make contributions until the age of 75. Depending on the type of contribution and your super balance you may have limitations.

Concessional Contribution or pre-tax – these include employer contributions and are limited to $27,500 this financial year. You may have a carry forward or unused cap amount that allows you to contribute more than the $27,500. There are rules around this so please check your situation and you can find your unused cap on your MyGov account. If you make a lump sum contribution you need to submit a notice of intent to claim a tax deduction.

Non-concessional or post-tax: The annual cap is 4110,000 and depending on your total super balance you may be able to bring forward two years to make a contribution of $330,000. You may be able to make $110,000 this financial year and $330,000 in July 2023 as well and again please check what is allowable for your circumstances.

Government co-contribution – if your income is under $42,016 a $1,000 non-concessional contribution could be matched by $500 from the Government. The more you earn the less they will match and it cuts out at $57,016.

Changes to note

From 1 July 2023 the new super guarantee contribution rate is 11% and employers will have to contribute this at the same time as your salary.

Minimum pension payments: From 1/July/2023 the minimum pension payment will revert to pre covid levels and your current pension payment may increase to meet the minimum.

Indexation of the transfer balance cap: The general transfer balance cap is moving to $1.9m. This is the maximum amount that can be transferred from accumulation to retirement phase. Depending on circumstances and when your pension was started you may have a different transfer balance cap and you can find this information in your MyGov account.

Please note that this is not financial advice and you should seek professional advice that is tailored to your situation. There are a number of rules around eligibility for contributions and they are different for each individual circumstance so if you are unsure what you may be able to do please get in touch.

About the author

Simon Duigan is an Independent Financial Advisor and owner of Core Independent Financial Advice (Core IFA). Core IFA is 100% independent and receives no commissions or benefits from any product providers or financial institutions.. Instead, you can be confident that Core IFA have your best interests at heart.


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