Super tips to help you prepare for tax time

The final stretch of the financial year is upon us which also means that tax time is around the corner. It’s a busy time for all so the earlier you start your preparations, the less stressful it will be come 30 June.

In preparation for tax time, here are a few tips from Media Super to help you understand what’s coming up and learn some tax-effective ways your super can work as hard as you do.

1. Check your contribution caps

There are annual limits^* to how much you can put in your super across all your accounts. These limits apply to both before-tax (concessional) and after-tax (non-concessional) contributions so make sure you’re not exceeding these limits with any additional contributions.

2. Get your contributions into your super before 30 June

To contribute to this financial year, your super fund(s) must receive your contributions by 30 June 2024. It may take a few days for your contribution to go into your super account (from your payment date) so consider making your payment in advance. This is especially important as you could miss out on any tax advantages or government incentives you’re eligible for.

3. Consider making a tax-deductible contribution if you can

We know that it’s been a tough year for many but if you can, consider making a tax-deductible contribution. To do so, you can make an after-tax contribution and claim a tax deduction for it to be treated as a before-tax contribution.

This could lower your taxable income and reduce the amount of tax you pay. These contributions are still taxed at 15% but will potentially be lower than your marginal tax rate (the highest tax rate you will pay on your income). It’s also important to note that this will count towards your annual before-tax (concessional) contributions cap^*.

Learn more about how to claim a tax deduction on personal contributions.

4. Consider making an after-tax contribution for a government co-contribution

If you made less than $58,445 this year, you may be eligible for a government co-contribution of up to $500 in return for making an after-tax contribution.

5. New Super Guarantee (SG) rate of 11.5% starts 1 July 2024

The right to super is a minimum entitlement for all employees. All employers are legally required to increase the SG rate from 11% to 11.5% in the new financial year.

Tax time can be a stressful period but it can be made easier with a bit of extra knowledge and early planning.

End of Financial Year (EOFY) webinar

Join us for a series of EOFY webinars from now till the end of June with more tips on how to boost your super and save on tax. These sessions are run at no extra cost and are great opportunities to have your questions answered.

^* The key contribution caps for FY2023-24 are $27,500 for concessional (before-tax) contributions and $110,000 for non-concessional (after-tax) contributions. For FY2024-25, these caps increase to $30,000 and $120,000 respectively.

This information is about Media Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide what’s right for you. Contact us or visit mediasuper.com.au

United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for the Construction and Building Unions Superannuation Fund ABN 75 493 363 262 offering Media Super products (Media Super)