A spouse contribution, when related to a contribution tax offset, is a way to boost a spouse’s super whilst managing tax. These contributions can also help address situations where one partner may have a lower super balance due to leave or reduced working hours.

Concessional super contributions (also known as before-tax contributions) include employer super guarantee (SG), salary sacrifice amounts and personal tax-deductible contributions. Concessional contributions are presently subject to a limit of $30,000 per financial year, taxable to the super fund at 15%. Prior to July 2018, concessional contributions were subject to a ‘use it or lose it’ scenario. However, unused concessional cap allowances began accruing from 1 July 2018 under the catch-up rules. These rules allow super fund members to carry forward any unused concessional contributions on a rolling five-year basis.

The End of Financial Year (EOFY) is once again fast approaching – providing an opportunity to review your position ahead of the new year to come. Given the inevitable June end rush, as well as processing and cut-off times, we believe it prudent to consider important actions in advance of deadlines. The following is an outline of key planning strategies that may require review. However, this may not cover all EOFY planning requirements – please contact your adviser if you have a query as they can assist by way of facilitation with other advisers (such as your accountant).

The maximum balance a superannuation member can move into the tax-free retirement (pension) phase is presently $1.9 million. This is due to a limit introduced in 2017 known as the Transfer Balance Cap (TBC). Indexation of the general TBC to $2 million will occur on 1 July 2025. We explore some of the implications below

A testamentary trust is a type of trust that is created through a person’s Will and takes effect upon death. Depending on your financial circumstances, this structure can provide the beneficiaries certain advantages in addition to an inheritance

Due to changes implemented in 2017 to limit the tax benefits of a transition to retirement pension, this strategy has received less attention in recent years. However, it remains a strategy that can assist those who have reached their ‘preservation age’ to have access to superannuation benefits without the requirement to leave a job or fully retire. Furthermore, a transition to retirement strategy can be used to manage ongoing cash flow, or to assist in executing extra tax-effective contributions to superannuation in the lead up to retirement.