Update from David: EOFY 2020 – SUPERANNUATION

David Myers
(DMA Financial Strategists)


The COVID-19 pandemic and the economic downturn that has followed, has not paused the passage of time.The end of the financial year is looming. It will be important that you read this and act quickly over next few days if you wish to take advantage of year end planning benefits.

Below we have highlighted some issues which we think you should consider prior to the 30th of June in order to maximise your strategy outcomes. In particular we are focusing on SUPERANNUATION.


Things to consider:

    1. Have you done your tax planning and in need of tax offsets- if the answer is yes -areadditional superannuation contributions in the way of non-concessional (after tax) contributions appropriate this year? You could be eligible to contribute substantial sums and structuring the timing and magnitude of the contributions is important.
    2. Timing is everything – Make sure any contributions either before tax or after tax are made well in advance of the 30th of June. Timing of contributions and/or their deductibility is dependent on the date they are received by your fund – be careful!
    3. Maximising your concessional (tax deductible contributions) –Check the total of concessional contributions already made before deciding on additional salary sacrifice or personal concessional contributions. Concessional contribution limits include the superannuation guarantee (SG) contributions made by your employer, please beware.
    4. Carrying forward your unused concessional (tax deductible) cap from previous yearsIf you less than $500k in super have a look at the concessional contributions you made last year, you might be able to ‘carry forward/use’ some of your unused concessional capfrom last year.
    5. Never too late to startJust about everyone can make personal concessional contributions to super nowadays and gain a tax deduction. Is this the year you start taking advantage of the tax saving you can enjoy?
    6. Insurance in super – Even if you are not actively contributing to a fund you can still usuallymaintain the insurance cover held in a fund by making an election in writing to the fund. Unless you do so, you risk the cover being cancelled with no opportunity for reinstatement.
    7. Get a free kick into your super from the Government – Low income earners can still receive a Government Co-Contribution of up to $500, but you need to make personal contributions this year to be eligible.
    8. Did you know you can obtain a tax offset in respect of super contributions made for your spouse subject to certain conditions?
    9. Evening the ledger with your spouse with super caps and pay less tax in the long term- the are strategies that can be employed to equalise balances in the super accounts of spouses. There are time frames and limits, so you need to do the calcs early if you intend to use these strategies this year.
    10. On 1 July 2017 we saw the introduction of the ‘transfer balance cap’. In simple terms, this restricts the maximum amount that may be transferred to a super pension. Super pensions have significant tax advantages, so maximising the amount you and your spouse receive in this form is a good thing. The trouble is, the only way to do so and make sure both of you can have as much as possible of your super in a pension account is to plan early, sometimes years out, and each year lost is an opportunity missed.
    11. Are you a Small business owner? – if you have had significant business asset sales this year you can relieve some of the tax burden as well as maximise superannuation contributions beyond normal limits.
    12. Early access to superannuation (due to hardship caused through COVID-19) -If you are unemployed, or have experienced a reduction in working hours, or in turnover (if you are a sole trader) of 20% or more as a result of the coronavirus, you may be able to access up to $10,000 from your superannuation account, tax-free. You will need to apply for early release before 30 June 2020. If you require assistance in determining your eligibility, please contact us.

Superannuation is a complex area, but it offers significant tax and other advantages. Once June 30 rolls by we will have a whole year to regret not taking advantage of the opportunities available,BUT remember we’re here to help.

The topics covered here are just some of the superannuation related matters we consider for clients at this time of year. If you have any questions about the issues raised, or if you would like us to review your circumstances or simply check that everything is on track, please don’t hesitate to contact us.



This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.


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