The Super Fund Co. Blog

Disclaimer:  This advice is general in nature and may not be construed as personal advice

With the end of the financial year approaching, we feel it is appropriate for clients to consider a couple of strategies.  These strategies may potentially reduce your taxable income and also enable you to start the 2024/2025 financial year with a fresh start.

Contributions to super:

The first strategy that you may consider is maximizing contributions to your super.  This may include maximizing the concessional (pre-tax) contributions as well as the non-concessional (after tax) contributions to super.

The concessional contribution limit for 2023/2024 is $27,500. This limit will rise next year to $30,000 on July 1, 2024. Concessional contributions may include, employer superannuation guarantee contributions (SGC), additional contributions that your employer may make, salary sacrifice and any member voluntary contributions.

You also have the ability to take advantage of unused carry forward contributions, allowing you to make further contributions, above the concessional cap. This applies for those unused amounts in the last 5 financial years,  Unused amounts are available for a maximum of five years, after which they will expire.

Please note: Your super balance as of 30th June of the previous year must be under $500,000 for the carried forward concessional contributions to apply.

The link below from the ATO website provides more information on your super.

https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super

Further, clients may have the ability to make non-concessional contributions (after tax).  The limit is $110,000 in 2023/2024. This will increase to $120,000 on the 1st of July, 2024.

You also have the option of bringing forward the next two years of non-concessional contributions in one financial year i.e., $330,000 in 2023/2024. You must be under age 75 at the time of making the non-concessional contributions and have a transfer balance less than $1.9m as at 1st July, 2024.

I would encourage you to visit the following ATO website for more information on non-concessional contributions clicking on the link provided below.

https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions

Tax Loss Selling:

Some clients like to take advantage of selling poor performing assets prior to the end of the financial year to either reduce their potential capital gain from realised gains or because they wish to carry forward losses.

I have provided another link below for you to review if you wish to consider tax loss selling before the end of the financial year.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/shares-and-similar-investments/when-you-can-claim-losses-on-shares-and-units

Please consult your tax adviser or accountant to discuss whether the above strategies are appropriate for your situation.