Legislation enabling super to be paid on Commonwealth funded Paid Parental Leave has now passed.  First announced earlier in the year (2024), the payment of superannuation aims to assist in reducing the impact of parental leave on retirement outcomes. This additional initiative expands on the improved Paid Parental Leave scheme and is summarised below.

Back in 2018 the government introduced the ‘Downsizer Contribution’ to enable home owners to contribute up to $300,000 into superannuation following the sale of their residence.  This was originally subject to a minimum eligibility age of 65, however over time this condition has been reduced to age 55. Accordingly, given the opportunity available, according to recent statistics collected by the ATO, approximately $20 billion has now been contributed under these provisions over the previous 6 completed financial years.

The total value of the superannuation pool has been growing significantly. With this comes a typical question covered in financial advice circles; ‘How does my superannuation get paid in the event of death’. A common misconception is that a will automatically deals with an individual’s superannuation assets. So how can you ensure that your retirement assets follow a desired outcome?

High income earners will be familiar with the somewhat dreaded ‘Division 293 tax’. However, Division 293 tax does not only apply to those people who derive substantial income from employment or self-employment. The additional tax bill can crop up as a result of taxable income from other sources, including investment income, capital gains and other one-off events or payments (e.g. employment termination payments).

With 2023/24 done and dusted and the new financial year upon us, it is a great time to review and kick start some financials goals.  The new financial year brings income tax cuts under the rollout of the revised Stage 3 plan. In addition, the concessional and non-concessional contribution caps have lifted. However, how can low and middle income earners benefit their superannuation position in juggling the above? The government super co-contribution scheme provides an option. This is explored below.

The 30^th of June is fast approaching. However, as we have yet to reach the end of the financial year, it’s not too late to think about generating some additional tax deductions for the 2023/24 year. If you expect your marginal tax rate to reduce from July 2024 as a result of the stage 3 tax cuts, bringing forward deductions to the current financial year could provide greater overall benefits.