The beginning of the financial year is the optimal time to ensure superannuation arrangements are on track for the year ahead, according to HLB Mann Judd’s director of superannuation, Andrew Yee.
Yee said reviewing salary sacrifice agreements, setting up a self-managed superannuation fund (SMSF) and making personal concessional contributions and notice requirements were among some basic arrangements that were frequently overlooked.
“If you are planning to make additional super fund contributions and claim a tax deduction, then you need to ensure that you have notified your super fund in writing of your intention to claim a tax deduction and you should also ensure that you receive an acknowledgment of your intention from your super fund,” he said.
Yee also pointed to considering a spouse super contribution as an income tax offset of up to $540 for superannuation contributions was claimable for the benefit of a low-income or non-working spouse earning under $13,800.
For those drawing a superannuation pension, Yee said it was important to ensure arrangements were put in place for their fund to pay the minimum pension during the financial year.
“The minimum pension for the year is based on a percentage of the fund member balance as at 1 July 2018, or, if you started your pension during the year, the fund member balance at commencement pro-rata for part year.”
Yee said Australians should also look at making downsizer contributions to their superannuation should they be planning to sell their home and carry forward any concessional contributions in line with regulations.
He also stressed that reviewing super fund investment options and fees charged was important in ensuring they aligned with attitudes to risk and time in relation to retirement, as was considering the costs of insurance within the fund.
“Anyone who is unhappy with their fund’s performance should consider professional advice to assist in switching funds or, if you have a large enough fund balance, to consider whether a SMSF is an appropriate option.”
Contributing the proceeds from the sale of a small business to superannuation and estate planning was a necessity as well.
