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With the football season now upon us, I can’t help but draw the analogy between the last quarter of football and the last quarter of the financial year. In this last quarter, it’s important to review your positions before the final siren on June 30.
The following provides an overview of the main superannuation issues to consider before the end of the financial year.
Ensure you have drawn the minimum required pension from your superannuation fund prior to 30 June. The minimums for this year are in the table below for your reference:
AGE | 2020/21 Minimum | 2020/21 Minimum |
Under 65 | 2% | 4% |
65 – 74 | 2.5% | 5% |
75 – 84 | 3% | 6% |
85 – 89 | 4.5% | 9% |
90 – 94 | 5.5% | 11% |
Over 95 | 7% | 14% |
For those with a spouse, you could consider the use of this strategy to keep your superannuation balances even. With the maximum limit of $1.6 million (soon to be $1.7 million) that you can shift into a retirement phase superannuation pension, it is important for spouses to try even up balances if one spouse is in danger of exceeding that limit.
You will need to complete some forms to lodge with your superannuation fund prior to the finalisation of the fund accounts for the year. You can find the ATO forms HERE
In the same vein of attempting to even out superannuation balances prior to drawing a retirement pension from your super, you may also be able to withdraw a lump sum from the spouse with the higher balance and re-contribute the same amount for the other member of the couple.
This can only be done if the person withdrawing the funds is eligible to do so, meaning they must have access to superannuation benefits that are Unrestricted Non-Preserved benefits.
With the end of the financial year approaching, you should review your superannuation arrangements before the siren sounds this year. Make sure you make your contributions in time so that they are received in the super fund bank account prior to 30 June.
The above list is not exhaustive, some of the items mentioned involve complexity and some have long-term implications. The strategies listed do not consider your personal circumstances, and I recommend you seek advice from an appropriately qualified adviser prior to implementing any of these strategies.
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.