Superannuation contributions - review your options before 30 June 2022

Credit: Jade Financial Group

The end of the current financial year is less than four weeks away, so now is a good time to review your superannuation options.

Getting more money into your super fund account before the 30 June deadline may be one of those options.

But make sure you are aware of the rules and maximum amounts you can contribute and also leave enough time for your super fund to process so they are recorded before the 30 June.

Check with your fund as in some cases the last week of June is too late to record contributions.

Make concessional contributions

You're able to have up to $27,500 per financial year in concessional contributions deposited into your super account, including the payments made by your employer plus any extra personal contributions you make. If you're currently below the annual limit you could make one or more personal contributions into your super account before 30 June.

Make a catch-up contribution

You can roll over any unused concessional contributions for up to five financial years. In other words, if $20,000 in concessional contributions were made into your account in 2020-21, you may be able to take advantage of your unused $7,500 gap from last financial year and roll it over into your 2021-22 contributions.

Make non-concessional contributions

Non-concessional contributions are after-tax personal contributions you make into your super fund, which can't be claimed as a tax deduction. They're completely separate from your annual concessional contributions and are subject to their own annual limits. The non-concessional contributions limit is currently $110,000 each financial year.

Make a downsizer contribution

First introduced in the 2018-19 financial year, the “downsizer measure” has provided an opportunity for individuals 65 years and older to add up to $300,000, and couples up to $600,000, into their super from the proceeds of their principal place of residence. The eligibility age is due to drop to 60 from 1 July this year. A downsizer contribution forms part of the tax-free component in your super fund. It can be made in addition to non-concessional super contributions and doesn't count towards your personal super contribution limit. A downsizer super contribution must generally be made within 90 days after you receive the proceeds of your home sale.

Next steps:

Call us for a quick chat or drop us a line if you're unsure about your super options before 30 June and need some advice.

References
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