Five EOFY superannuation tips for healthcare workers
With the end of the financial year fast approaching, financial advisory firm The Moreton Group has advised some of its healthcare clients to make extra contributions to their super, which could potentially help them retire earlier.
Cameron Dickson, Managing Director of The Moreton Group, said contributing to super is a good way to lower taxable income and grow your retirement nest egg in most cases. “Some healthcare workers can increase their tax-back by making a tax-deductible transfer into their super fund from their savings before the end of the financial year,” he said.
Making superannuation contributions could take months off one’s working life. “For example, a recent 55-year-old registered nurse with $250,000 currently in their super account had projections of a super balance of $539,964 at 65 if they make no additional contributions,” Dickson said.
“The projections also illustrated if this nurse were to contribute $1000 in the lead-up to EOFY every year until they retire, their projections showed they could retire with $553,051, allowing more financial freedom in their retirement or even the opportunity to retire months earlier than they originally planned.
“The benefits of contributing to super can be realised long before retirement, because contributions are taxed differently to your normal income, with our registered nurse projected to get a tax refund of $3866 over the 10-year period of contributions” he said.
The most valuable thing anyone can spend their tax return on is their future, Dickson said, adding that getting personalised advice can help get a clearer picture of retirement needs.
Dickson suggested five tips for healthcare workers to make their EOFY ‘super’:
- Reduce your taxable income by salary-sacrificing into super:
- Ask your employer if they offer salary sacrificing.
- Let your employer / accounts team know how much you want to contribute each pay.
- Make contributions to super before June 30 and claim them back on tax:
- Before you make a contribution, check you are eligible.
- Ensure that the cumulative amount of your contributions in the last year is no more than $27,500.
- Make a contribution to your super fund via their website or app.
- Fill out a Notice of intent to claim or vary a deduction for personal contributions form to your super fund and receive an acknowledgement.
- Get a super top-up from the government:
- If you are eligible, you'll receive up to 50c for every dollar extra you contribute into your super account and don’t claim a tax deduction, up to a maximum of $500 through the Government Co-contribution scheme.
- Contribute to your super ahead of June 30.
- Make a spousal contribution:
- If you are eligible, you can contribute to your spouse’s super and claim a tax offset of up to $540.
- Fill in the details about the super contributions made on behalf of your spouse in your tax return.
- Lodge your tax return.
- Invest your tax return into super:
- Check you are eligible.
- Contribute to your super once you receive your tax return.
- Fill out a notice of intent to claim or vary a deduction for personal contributions form (NAT 71121) to your super fund and receive an acknowledgement.
- Make a claim on this contribution next year.
ACCPA Interim CEO Paul Sadler said the announcement is dire news for aged care providers who have...
The Australian Mental Health Prize seeks to recognise Australians doing important,...
The health sector, like many others, has experienced significant disruption due to the pandemic...