AMA Victoria - Vicdoc August/September 2019

The importance of a healthy, strong super For many, the realm of superannuation can be a minefield of confusion. Trying to understand the different strategies at your disposal and what they could mean for your retirement can seem like an impenetrable task. At Lanteri Partners, we have 27 years of experience in the wealth management industry and work to illuminate the path to superannuation success for our clients. Here are some of the key strategies that could help you grow your super fund and ensure a financially healthy retirement. Employer contribution Also known as superannuation guarantee, this is the percentage of your wage that your employer pays into your fund as mandated by law. The current rate is 9.5 per cent, but it will increase to 10 per cent on 1 July, 2021. Salary sacrifice Employees can also choose to make voluntary contributions to their super fund from the remainder of their pre-tax salary. Choosing to sacrifice your salary in favour of higher annual superannuation contributions can create a significant tax benefit. People who earn less than $250,000 only pay 15 per cent tax on these contributions, while people who earn more than $250,000 pay 30 per cent tax. This $250,000 income threshold also includes your reportable super contributions and fringe benefits. The current limit on how much you can choose to sacrifice of your pre-tax salary is set at $25,000 per annum, which is inclusive of an individual’s employer contribution. Salary sacrifice top-up for under $500k balance Since 1 July, 2018 people with a total superannuation balance below $500,000 have been able to contribute more than the $25,000 per annum threshold. If you contribute less than $25,000 of your pre-tax salary to your super fund in a given financial year, you can carry the unused amount forward and add it on to the following financial year’s contribution. For example, if your pre-tax contributions total $22,000 one year, then the next year you are eligible to contribute a total of $28,000 in pre-tax super contributions. Unused amounts can be carried forward for up to five years on a rolling basis. Non-concessional Non-concessional superannuation contributions come from any monies you have already paid tax on, for example after tax salary, savings, inheritance, etc. They can only be made if your total superannuation balance is less than $1.6 million at the end of the previous financial year. The limit for this kind of contribution is $100,000 per annum. People over the age of 65 can only make these contributions if they are gainfully employed for at least 40 hours in a consecutive 30-day period in that financial year. The bring forward rule If you are under 65, you may be able to contribute more than the annual non-concessional contribution limit of $100,000 in a single year. Currently, the maximum amount you can bring forward is up to $200,000 of the following two years’ worth of non-concessional contributions, where your total super balance is below $1.4 million at 30 June of the previous financial year. This bring forward total amount is reduced to $200,000 for those with a total super balance of between $1.4 to $1.5 million at 30 June of the previous financial year. For instance, it is possible to bring forward two years’ worth of non-concessional contributions and pay $300,000 into your super fund in one year, which utilises the following two years’ of non-concessional contributions. The above assumes you have not triggered the bring forward rule within the previous two financial years. The total super balance includes all of your super if you have more than one super fund. Lanteri Partners has the knowledge and experience to ensure you can utilise every tool available to maximise your superannuation fund. Instead of fumbling around in the dark with super strategies, contact us and receive the best treatment from industry professionals. Give us a call and book in for a complimentary financial check-up on 03 96503722. www.lanteri.com.au This information is general advice only, you should consider your own circumstances before making any amendments to your strategy. Contact your financial adviser for further information. At Lanteri Partners Group, we have passion, expertise, client trust and 27 years in the business. When it comes to your retirement, nothing is more important. Our team of wealthmanagement specialists are equipped to advise you on superannuation, portfolio funds management, accounting and taxation, business advisory, property investment and finance. Receive a profitable and tailored investment strategy that complements your personal financial goals. If you have these goals, we will help you exceed them, if you don’t, we will help you build them. We invest in your future and retirement the same way we would ours – with care. You have worked for your money, now let it work for you. Call us and book your complimentary review 03 96503722 | www.lanteri.com.au When you RETIRE, retireWELL Most people are unaware that once you retire and are of the age of 60 or greater, your superannuation fund can be converted to a tax free environment. Whether your fund earns income from investments, takes a capital gain or pays you a pension of $10,000 or $100,000, as long as your fund is under $1,600,000 it will all be tax free, the perfect legal “tax haven”. You have worked hard and paid your taxes throughout your working career – with the right strategies and investments, its then time to enjoy the rewards of your hard work! ADVERTORIAL 46 | Vicdoc August / September 2019