June 30 brings a lot of deadlines with the end of financial year. But that doesn’t mean that there isn’t anything you can do to boost your super before we are hit with the end of the month. The best thing about super is the little extra effort you put in today will make a massive improvement to your future. So let’s kick this off with the co-contribution scheme, because if you want FREE money from the government this is how to get it!
1. Check if You Qualify for the Co-Contribution Scheme
The co-contribution scheme has been put in place for people who earn less than $52,697 annually.
Since the election the Coalition has changed the rules slightly so that you must contribute $1,000 if you want to grab the Government’s money for your super. It does mean you have to contribute the full thousand and not just a fraction of it. The Coalition have made it easier to get the higher co-contribution amount if you were hovering between the $37,697 and $43,697 increments. This is great news for our low income earners. Below is a table which explains the different income brackets.
Your total income
Your after-tax contribution
Up to $37,697
If you are eligible, participating in this co-contribution initiative is a great way to boost your super before June 30! If you are contributing $1,000 and the government is putting in $100-$500 this alone will increase your super account exponentially by the time you retire. The catch to qualifying for this is that you need to be transferring your funds this week so that you can ensure your super fund receives it before June 30.
The government will only put in their co-contribution if your super fund receives your payment on or before June 30. So log into your super account and get that BPAY number now!
2. Check Your MyGov Account for “Missing” Super
While you are transferring funds around make sure you log in to your MyGov account and check how much super the government thinks you have. It’s ok if it’s less than what your super account has recorded, as employers don’t need to report to the ATO until July. However, it’s always a good idea to keep track of your balance.
If your MyGov account thinks you have more than what your super fund says you have, you may have more than one super account or unclaimed super waiting for you. You’ll want to jump on this quick and make sure that you don’t accidentally have super you have earned not working for your future. If you have more than one super account that means you could potentially be paying multiple fees. If you have $20,000 in two separate saving accounts rather than one it cannot compound as quickly as if you had $20,000 in one account. To boost your super before June 30, make sure that all your super is in one fund and you’re only paying one lot of fees.
3. Seek Advice from Your Advisor
A great thing to do at EOFY is to book an appointment with your Financial Planner and ask them how your super is invested. How your super fund has your money invested may not be in your best interests – especially if you have recently had circumstances change in your life. Maybe you have just got a new job or a pay-rise, you’ve just bought your first home, or got into a serious relationship, had a child, or maybe your children have finally moved out of home, whatever the change, take the time to review how your super is invested.
Did you know: Super funds let you decide how you want your money invested – whether you want your money in a growth phase, a balanced phase or a conservatively invested it’s good to talk to your Financial Advisor and understand what risks you can afford to take. You can boost your super just by changing up how you invest it! – It’s always a good idea to get professional advice before you change your super risk profile.