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Financial Planning
Deductible Contributions to superannuation
Satisfy minimum pension

Things to consider before 30 June

Glenn Fairbairn
Director/Private Client Adviser
23 Jun 2014

As the end of another financial year approaches, now is the time to focus on financial planning, in particular around superannuation.

Strategies to consider before 30 June include:

Personal contributions to superannuation

This financial year, the maximum personal after-tax contribution (non-concessional contribution) is $150,000. However, if you are 65 or under you can contribute up to $450,000 over a three-year period.

Be cautious when activating this ‘bring forward rule’ because from 1 July 2014, the cap will increase to $180,000. This means if you can trigger the bring-forward rule after 1 July 2014, a total of $540,000 can be contributed over the fixed three-year period.

Deductible Contributions to superannuation

For individuals aged 60 or above, the maximum tax-deductible contribution (concessional contribution) cap is $35,000. These contributions include; amounts you salary sacrifice, the Superannuation Guarantee (SG) or, if you qualify, personal deductible contributions. 

Given these contributions are generally taxed at a flat rate of 15 per cent; you may receive a tax benefit from this strategy.

Satisfy minimum pension

Drawing a pension from your superannuation fund can provide significant benefits, including the ability to supplement your income with a tax effective income stream and render tax free earnings within your superannuation fund.

However, a condition of drawing a pension from superannuation is satisfying the required minimum. This minimum pension is calculated with reference to the following:

Please remember to contact your adviser with any questions when considering the above strategies or for further information around financial planning around EOFY. 

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.