Act now to make your super contributions count this financial year

When it comes to superannuation, the Government seems to enjoy moving the goal posts from year to year.  Even though contribution caps and eligibility rules change fairly regularly, super is still a worthwhile and tax effective retirement saving tool.  Importantly, if you want your super contributions to count in this financial year, you need to act sooner rather than later.

In this article, I overview THREE super contribution opportunities and issue an important warning when getting ready for end of financial year.

With 30 June a few short weeks away, you’re fast running out of time to implement end of financial year super strategies that can boost your retirement savings and which may create a worthwhile tax benefit.

Here are a three tips for making the most of your super.

Contribute more to your super fund
The annual concessional (pre-tax) contribution cap is $27,500. If there’s room in this year’s cap, and you have available cash, you should consider topping it up to the maximum amount.

Even better, if there are unused contribution amounts from the past five years starting 2018-19, you may be able to take advantage of the ‘catch-up’ rule and add those unused contribution amounts to this year’s cap amount.

For other surplus cash, you may also like to consider contributing up to $110,000 per year as a non- concessional (after tax) contribution.

For larger amounts, such as proceeds from the sale of an asset or an inheritance, you may be able to use the bring-forward rule and contribute up to $330,000 in the one year.

Eligibility conditions may apply affecting your age and your Total Super Balance (TSB) at June 30, 2022, so be sure to get advice.

Downsizer contributions
The Downsizer rule has been around for a while and it allows Australians to sell their family home and contribute up to $300,000 (or $600,000 per couple) to their superannuation. It’s an attractive option as there are no penalties for downsizer contributions which are over and above caps or the fund’s Total Super Balance.

Earlier this year, the government lowered the eligibility age to 55 years, making it possible for executives who may be in the pre-retirement planning stage of their life to get more money into super.

While it may be called the ‘Downsizer’ rule, it’s worth noting there is no requirement to actually downsize your living arrangements, if you choose to purchase an alternative private residence.

Salary sacrifice or personal deductible contributions
Salary sacrificing or making personal deductible contributions of surplus cash to super may allow you to enjoy super’s low 15% tax environment while boosting your retirement savings.

If you already have salary sacrifice arrangements in place, it’s important to check your concessional contributions so far. This financial year, the Employer Super Guarantee increased from 10.0% to 10.5% (next financial year it will be 11.0%) which may mean your regular salary sacrifice contribution, when added to your employer’s contribution, could run over your annual cap amount of $27,500.

While this does create a tax implication, there are options to pay the associated tax.

However, as mentioned earlier your Total Super Balance at June 30, 2022 may also affect how much more you can contribute.

Fraudsters know that a lot of money moves around prior to June 30 and they are finding new and clever ways to steal it. It’s important to be suspicious of emails containing instructions and bank account details. Always call to verify the details before transferring money and never click on unfamiliar links.

Next steps
To ensure your super contributions count towards this tax year, complete your contribution transactions early.

This is because financial institutions may not be able to process the transaction in time if you leave it to the last minute. May I suggest you plan to complete your contribution transfers by June 26.

If you need advice about superannuation, your executive share scheme and financial planning, please contact James Marshall on +61 (0) 7 3007 2080 or email

Learn more about James here.

Executive Strategies is a specialised information hub for executives and senior managers who may have founded their own business or who work for growing private, ASX listed companies or government businesses. Its purpose is to provide access to specialist advisers and information that addresses the often-complex issues affecting their personal prosperity.

Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This advice is general and does not take into account your objectives, financial situation or needs. You should not act on it without first obtaining professional financial advice specific to your circumstances.

*Please note: For advice and services relating to this matter that are not offered under the Fortnum Private Wealth AFSL, in accordance with our collaborative advice model, when required, such matters are referred to appropriately qualified professionals.

Share this post
You may also like