With the end of Financial Year looming there are a number of changes that are taking place we would like to bring you up to speed on.

Firstly, the Team is on the trail this year and checking every account to see what the top up amounts are for you to reach your $25,000 concessional superannuation cap and we are also looking at whether clients are entitled to any carry forward entitlements ie if you didn’t make contributions up to the maximum from 2018 and whether you are entitled to do a “catch up” before 30 June 2021.

A few obvious ones that are often forgotten:

• Spousal contribution – if your spouse or defacto is under age 70, working and earning less than $37,000 he or she may be entitled to receive a spousal contribution of up to $3,000 into their super fund and the contributor receives a 18% tax rebate ($540).
• Government co-contribution – if you earn less than $39,837 you can put $1,000 into super and the government will co contribute another $500. That’s a 50% return with no risk.
• Claiming office expenses – the Tax Office has put out a short cut approach that pays you 80cents an hour for the time you work from home. But given we are all doing this and it has become the norm then you’re better off using the actual cost method.
• Sell underperforming stocks before the end of Financial Year to create losses which you can then offset against claims you make in the future.

A few less obvious changes coming your way:

• Superannuation Guarantee increases to 10% from 1 July 2021.
• Contribution caps are increasing as well. The $25,000 concessional cap goes to $27,500.
• The non concessional cap rises from $100,000 to $110,000.
• If you are drawing a Pension income stream out of your superannuation the minimum drawdown that was reduced by 50% as a result of COVID19 will remain in place until 30 June 2022.

There is a lot of other reforms out there from the Budget, but they are not law so I am not going to even discuss them.

Hope this helps. Any questions please give us a call.