Future thinking should be shared. With that in mind our team publishes insights weekly to help keep you in the (k)now.


Hewison Private Wealth - Insights
Hewison Insights

Boost your future with EOFY superannuation contributions

Tess McIntosh
Senior Associate Adviser
8 May 2024

As the end of the financial year approaches, it’s time to consider one of the smartest financial moves you can make: contributing to your superannuation. While it may not seem like the most exciting way to spend your money, investing in your super before the financial year ends can have significant benefits for your future financial security. In this blog, we’ll explore why contributing to superannuation before the end of the financial year is so beneficial.

Boosting retirement savings
Superannuation is essentially a long-term savings vehicle designed to provide for your retirement. By contributing additional funds to your super before the end of the financial year, you’re effectively boosting your retirement savings. Even small contributions made now can have a big impact over time, thanks to the power of compounding returns. By consistently contributing to your super, you can build a substantial nest egg to support you in retirement.

Tax savings
One of the primary benefits of contributing to your super is the potential for tax savings. Super contributions are generally taxed at a lower rate than your regular income, and certain contributions may even be tax-deductible. By making additional contributions to your super before the end of the financial year, you can potentially reduce your taxable income for the year, leading to lower tax obligations. This can translate to significant savings come tax time.

Taking advantage of contribution limits
There are annual caps on the amount of money you can contribute to your super at concessional tax rates. By making additional contributions before the end of the financial year, you can maximise your use of these contribution limits and ensure that you’re making the most of the tax benefits available to you.

Diversifying your investment portfolio
By making additional contributions to your super, you are creating a larger capital base from which to diversify your portfolio and potentially enhance your long-term returns. Your target asset allocation is in place to guide investment recommendations that align with your circumstances and financial goals and objectives.

In conclusion, contributing to superannuation before the end of the financial year offers a range of benefits, including tax savings, boosted retirement savings, and diversification. By taking advantage of contribution limits, you can set yourself up for a more comfortable retirement and enjoy greater financial independence in the years to come.