The end of the financial year is approaching quickly, which means it’s time to get smart with your super and tax savings strategies.
In this article, we outline a range of strategies available that may help you boost your super, reduce tax and secure your retirement savings.
We also explore key superannuation changes taking effect on 1 July.
Life is not all about dollars and cents. Giving to your community feels good, and plays a critical role in helping those who need a hand. So, if you are keen to explore ways to give back to your local community in Geelong, Surf Coast and the Bellarine Peninsula we have included information about the P500 collective giving program that we support individually, and as a business.
Ways to save tax using your superannuation
We’ve put together a short list of our top tax-saving tips (using your super).
The opportunity to boost your super may be a smart option if:
- You have taxable income from work;
- You have sold an investment with Capital Gains Tax consequences;
- You had a super balance under $500,000 on 30 June 2021;
- You’re still working but have not contributed to super for a number of years;
- You have spare savings sitting idle in the bank.
To learn more about these strategies and other ways to benefit, read our full article here.
Key Super changes from 1 July 2022
- The super guarantee rate jumps from 10% to 10.5%
- You can contribute to super until age 75 regardless of your work status.
- If you’re over 67, you may now be able to add up to $330,000 to your super.
- The Downsizer Contribution eligibility now includes those over 60.
Pension minimum extended to 30 June 2023
The extension for a further year to 30 June 2023 builds on the reductions made available at the onset of the pandemic.
If you’re retired and drawing from your super, reduced minimum pension payment rates may make life easier by giving you more flexibility and choice for your retirement income. You can also preserve more by drawing less from your super.
If you are already receiving a super pension, your minimum will be recalculated on 1 July and communicated to you along with your payment options in the coming weeks. If you would like to review your pension income and understand how you can make the most of the temporary measures please contact your Adviser.
A worthy cause in the local area
If you need a tax break, didn’t spend all of your Government payments or just want to be a positive contributor to your community then perhaps consider the P500 collective giving program. Many of our clients and staff already donate and love the concept of contributing collectively for a higher impact in the local area.
P500 is part of the Geelong Community Foundation and aims to make one primary grant each year of at least $60,000 and to grow an endowment fund collectively.
As a $500 donor, you also get to vote on which community organisation receives the annual grant.
In 2021, P500 secured 237 donors, giving a total of $118,500, half of which is added to the P500 Endowment Fund. The interest generated in 2021 from the Endowment Fund was $9,071 which was added to the $59,250, providing a grant total of $68,000 (rounded) awarded by donors to Geelong Youth Engagement.
The P500 concept is a great way to provide a lasting gift to your community.
In 2022, the P500 program is striving to hit 250 donors – can you be counted on?
Donating is easy – you can contribute online today here.