Time for a superannuation check-up?
The new financial year has begun, and with it have come some important changes to superannuation from 1 July 2024. With these changes coming into effect, it’s a good time to give your super a check-up.
.
On 1 July 2024, the superannuation guarantee rate increased from 11% to 11.5% on workers’ ordinary time earnings, for payments of salary and wages. In addition, the concessional super contributions cap also increased from $27,500 to $30,000 and the non-concessional contributions cap increased from $110,000 to $120,000.
The Australian Taxation Office (ATO) suggests the following steps as a good place to start in giving your super a check-up:
- Check your contact details: Make sure your contact details and tax file number (TFN) are up to date with the ATO and your super fund.
- Check your super balance and employer contributions: Checking your super balance and keeping track of your employer contributions can be done at any time through ATO online services or your super fund.
- Check for lost and unclaimed super: If you’ve changed your name, address or your job, you may have lost track of some of your super. Lost super is where your super fund hasn’t been able to contact you, or your account is inactive and then have transferred lost super to the ATO. You can check this online.
- Check if you have multiple super accounts and consider consolidating: If you’ve ever moved jobs, you might have more than one super account. Each account will charge fees and may include insurance, so combining your super accounts may reduce fees, help you pay only for the insurance you need and make your super easier to manage.
- Check your nominated beneficiary: Make sure you have a valid death beneficiary nomination with your super fund, as this isn’t covered by your will. Check with your fund if there is an expiry on the nomination – some funds have options where the nominations don’t expire, while most nominations expire every three years. If you don’t have a beneficiary nominated, your fund will follow the law in determining where your super should go.
In addition, you should be evaluating how your super is being invested and how it matches your stage in life, how much risk you are willing to bear on these investments, if you super fund has insurance cover, does this still meets your needs, and do you have enough super for your retirement goals? This may determine a need to top-up on super contributions before retirement.
Given the many factors to consider, such as your health and life expectancy, inflation and investment returns, wages growth and taxation, and fees and regular contributions, it is best to seek professional advice regarding your superannuation circumstances and options moving forward.
Acctweb
Hot Issues
- ATO reveals common rental property errors from data-matching program
- New SMSF expense rules: what you need to know
- Government releases details on luxury car tax changes
- Treasurer unveils design details for payday super
- 6 steps to create a mentally healthy and vibrant workplace
- What are the government’s intentions with negative gearing?
- Small business decries ‘unfair’ payday super changes
- The Leaders Who Refused to Step Down 1939 - 2024
- Time for a superannuation check-up?
- Scam alert: fake ASIC branding on social media
- Millions of landlords the target of expanded ATO crackdown
- Government urged to exempt small firms from TPB reforms
- ATO warns businesses on looming TPAR deadline
- How to read a Balance Sheet
- Unregistered or Registered Trade Marks?
- Most Popular Operating Systems 1999 - 2022
- 7 Steps to Dealing With a Legal Issue or Dispute
- How Do I Resolve a Dispute With My Supplier?
- Changes to Casual Employment in August 2024
- Temporary FBT break lifts plug-in hybrid sales 130%
- The five reasons why the $A is likely to rise further - if recession is avoided
- June quarter inflation data reduces risk of rate risk
- ‘Bleisure’ travel claims in ATO sights, experts warn
- Taxing unrealised gains in superannuation under Division 296
- Most Gold Medals in Summer Olympic Games (1896-2024)
- Estate planning considerations
- 5 checklists to support your business
- Are you receiving Personal Services Income?
- What Employment Contracts Does My Small Business Need?
- The superannuation changes from 1 July
What our clients say about us