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.