How to get your super in shape for the new year
With 2021 and the sense of a fresh start around the corner, there are a few quick and easy things you can do to make sure your super’s in shape for the new year.
With our thoughts turning to tax returns, now could be a good time to consider putting together a plan for your super for the new financial year.
Super Adviser Diana Antonious let us in on some things to think about.
According to Diana, now is the perfect time to think about your contributions for the financial year and speak to a Super Adviser to determine whether you are in the position to maximise either your concessional or non-concessional contributions.
“By maximising your contributions, you’ll be increasing your super savings and putting in place a plan for your future,” Diana said.
The concessional (before-tax) contributions cap is $25,000 for the 2019/20 financial year.
Contributions from your employer, along with any before-tax salary sacrificed contributions you make, count towards this cap.
You can see how much you and your employer have contributed to your Qantas Super account so far this financial year by logging into your account online. Once you’ve done this, you can then broadly forecast how much you and your employer will contribute by the end of the year, and how much space you may have remaining under the cap by 30 June 2020.
Some of our older Divisions have specific rules about making concessional contributions. A Super Adviser can help you understand these rules, and determine whether making any extra voluntary contributions is right for your situation.
The non-concessional (after-tax) contributions cap is $100,000 for the 2019/20 financial year.
There are a couple of ways to make non-concessional contributions.
You can choose to set up either a one-off payment or regular contributions via Payroll. The payment will then be made by Payroll from your after-tax salary to your super.
Non-concessional contributions can also be made via BPAY – all you have to do is log into your account and follow the prompts to make a contribution.
You may want to consider:
If you fit the eligibility criteria, you may be able to claim a tax deduction for personal super contributions that you make from your after-tax income.
To do so, you must give Qantas Super a notice of intent, and you must receive an acknowledgement in return.
Depending on your marginal tax rate and income, Diana explained that claiming a tax deduction for personal super contributions could give you an advantage at tax time.
“If you’ve recently come into an inheritance, have savings, or have sold an asset that you’d like to move into a tax effective environment like super, you can think about contributing $100,000 this financial year, or whether you want to trigger the bring forward rule,” Diana explained.
The bring forward rule allows eligible members under the age of 65 to make up to three years’ worth of non-concessional contributions in one year. Other eligibility criteria apply.
With our minds on how much money we’re getting back from (or perhaps owe) the ATO, Diana said now is a good opportunity to consider conducting a search for any lost super that may be sitting around in another fund or with the ATO.
There were over 6.2 million lost and ATO-held accounts at 30 June 2018, with a total value of $17.5 billion. Having more than one super account could mean paying multiple sets of fees, extra paperwork and greater difficulty in keeping track of your super.
“Younger people in particular might have a few super funds floating around, so it’s worthwhile conducting a super search to find out what you have, and then seeking advice about whether to consolidate,” Diana explained. While consolidating super accounts has a number of benefits, the insurance offered between funds may vary and should be considered as part of a decision to consolidate.
You can conduct a search for any lost super by logging into your Qantas Super account and clicking ‘Find My Super’.
The taxation position described is a general statement and should only be used as a guide. It has not been prepared by a registered tax agent and it does not constitute tax advice. It is based on current tax laws and our interpretation. If you seek super advice, any taxation position described is incidental to the advice being provided. This information and any super advice has not been prepared by a registered tax agent. You should consult a registered tax agent for specific tax advice about any liabilities, obligations or claim entitlements that arise, or could arise, under a taxation law.
With 2021 and the sense of a fresh start around the corner, there are a few quick and easy things you can do to make sure your super’s in shape for the new year.
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If you need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.