Your EOFY super checklist

As the end of financial year approaches, now’s a good time to think about how you can use superannuation to maximise your tax benefits.

With tax time almost upon us, it’s time to get your affairs in order. And if you’re like most Australians, you’ll be looking at ways to make the most of your money.

One way to reduce your tax burden is to put money into your superannuation. Pre-tax super contributions and investment earnings are usually only taxed at 15%¹, while withdrawals are tax-free once you reach 60.

But there are a few things to think about before you go ahead – how much money you have in your super, how old you are and how much you earn.

4 types of super contributions that could create tax benefits...

Tax-deductible super contributions

If you make an after-tax super contribution before 25 June 2024, you may be eligible to claim a tax deduction.

To claim a deduction, you can let your fund know by completing and lodging a ‘Notice of Intent’ form. Your fund must acknowledge this before you file a tax return for the year you made the contributions.

Claiming deductions on these contributions can be advantageous if you receive extra income, which would otherwise be taxed as personal income. This also applies to the sale of any assets where the gains are subject to capital gains tax.

Government co-contributions

If you’re a low to middle-income earner and make an after-tax super contribution of $1,000 which you don’t claim a tax deduction on, you might be eligible for a government co-contribution of up to $500.

If your total income is equal to or less than $43,445 this financial year, you’ll be eligible to receive the maximum co-contribution of $500. If your income is between $43,445 and $58,445, your entitlement will reduce progressively as your income rises.

Spouse contributions

If you’re earning more than your partner, you might want to consider making a spouse contribution and claiming a tax offset.

The maximum $540 offset requires a minimum contribution of $3,000 and your partner’s annual income to be less than $37,000. You could claim a partial offset if their income is less than $40,000.

Salary sacrifice contributions

Salary sacrifice contributions are also generally taxed at 15% (or 30% if your total income exceeds $250,000), which can be less than your personal rate of income tax. You need to set up a salary sacrifice agreement with your employer first, before you can salary sacrifice your pay and/or bonus into superannuation.

From 1 July 2024, the compulsory super guarantee (SG) payment for PAYG employees is going up by half a percent to 11.5%. Meanwhile, the annual pre-tax concessional contribution cap will increase to $30,000.

While the increase in the cap will allow more salary sacrifice, the higher SG rate will reduce some of that additional capacity. So it’s a good time to review any arrangements you have with your employer.

…and 4 important things to consider

1. To claim a deduction or other Government concession on your super contribution, your super fund must receive your contribution before the end of financial year.
2. Limits apply on contributions, and you may incur additional tax and penalties if you go over the caps. Read more about super contribution types, limits and benefits here.
3. The Government sets general rules around when you can access your super, which typically won’t be until you reach your preservation age and meet a condition of release, such as retirement.
4. The age for downsizer contributions has been lowered from 60 to 55 years, enabling more Australians to contribute up to $300,000 from the sale of their home into super.

Topping up your AMP Super

If you're an AMP Super member and would like to make a voluntary super contribution before the end of financial year, head to amp.com.au/contribute.

Super rules can be complex so it’s important to understand any potential risks before making extra contributions. Speak to a financial adviser to work out the best super and tax strategy for your particular circumstances.