EOFY (End of Financial Year) Tips
Act before 30 June!
There are strategies to help you pay less tax this year but you’ll need to get started before 30 June. Explore the tabs below to find out how to keep more of your money with our EOFY (End of Financial Year) Tips.
Keep more in your hand this financial year
With the financial year-end fast approaching, now’s the time to think about how you could use your super to save. A simple conversation today could help you boost your super and save tax at the same time.
More super, less tax
If you can salary sacrifice some of your pre-tax income before the end of the financial year, you may be able to boost your super and reduce your tax bill at the same time.
There are limits on pre-tax contributions into super—$30,000 if you’re under 50 and $35,000 if you’re older—and they include the contributions your employer makes during the year.
Depending how much you’ve earned, you may be eligible for a tax-free super deposit from the government ―but you’d need to have made an after-tax contribution of up to $1,000 to your super before 30 June 2015.
If you’ve earned less than $34,488, you may be entitled up to the full amount―$500.00 as a government co-contribution. The co-contribution you’ll qualify for will decrease by 3.33 cents for every dollar you’ve earned between $34,488 and $48,488. And your eligibility ceases altogether once you’ve earned more than $48,488.
Find out more about the government co-contribution.
You may be able to make an after-tax contribution to your super of up to $180,000 (or more using the bring-forward rule) before 30 June 2015.
If you’re aged 65 or older you’ll need to meet the work test before contributing a lump sum so be sure to seek advice first.
You’ll need to fill in a notice of intent form before submitting your tax return―and make the contribution before 30 June. But be aware of the contribution limits otherwise you’ll pay extra tax.
It’s a simple way to reduce your tax this year and build wealth for later on.
It’s an easy way to create a better tomorrow and keep more money in your hand at the same time.
Find out more about tax offsets on spouse contributions.
Gearing up for retirement
Depending on your age (usually 55 or older), you could reduce your working hours and supplement your income with a regular income from your super.
Once you turn 60, the income you take from super will be tax free.
To find out more about your options when moving on from work – read AMP’s article on the transition to retirement.
To find out how much super is enough, check out AMP’s Budget planner calculator to assess your current financial situation and estimate how much you need to save for retirement.
Paying money into super
Investing in super can make financial sense. And there are several ways to put money into your super―using pre-tax dollars, money from your take-home pay, government co-contributions and spouse contributions.
Contact your super fund for details about depositing money into your super and if you’re aiming to reduce your tax bill before 30 June, remember to allow three business days when making deposits made via BPAY.
