Depending on your age and your stage of working life, your superannuation account may not be getting the attention it deserves.
Here are some quick tips to ensure your superannuation is in good shape going forward, regardless of how far away retirement is for you.
- Ensure your Tax File Number is supplied to your super fund. Without it, your concessional contributions will be subject to a penalty tax, you will be restricted from making non-concessional contributions, and you’ll be excluded from the co-contribution scheme. A lot of consequences that can be easily prevented!
- Streamline your super accounts. In fact, every time you change job it is good practice to nominate your own super fund or roll your existing fund into the employer nominated funds. This will prevent the common situation of having numerous different super accounts, all being charged fees and all with less ability to provide compounded returns than if that money was combined in the one account under the one management strategy. It is a no-brainer, an easy fix yet something so many of us are guilty of doing.
- Make sure you have clearly identified and (if required) updated the information you provide your super fund about your beneficiaries. This will save your nearest and dearest a lot of heartache in the event of your death and save potential tax costs as well.
- Consider the advantages and appropriateness of making concessional contributions to your super. By doing this you may reduce your taxable income throughout the financial year. You should consider your income to determine whether or not this would be an effective action to take, however if your taxable income is greater than 15% then making concessional super contributions, for example through salary sacrifice, may be an effective way of increasing your super account while decreasing your taxable income.
- Remember, if you are over 65 years of age, you must work 40 hours in a 30-day period during the financial year to qualify to make contributions to your super.
- If you are a low or middle-income earner and make non-concessional contributions to your super fund, keep in mind that you may be eligible to receive a co-contribution from the government to a maximum amount of $500.
We are more than happy to provide a review of your superannuation accounts to help you ensure that your superannuation is in tip top shape!