Make the most of EOFY: super strategies to discuss with your financial adviser

As the end of the financial year (EOFY) approaches, it’s a timely reminder to check in on your financial health and take advantage of opportunities to strengthen your retirement savings. 

Whether you’re looking to grow your superannuation, reduce your tax obligations, or simply make smart financial decisions, working with your financial adviser and accountant can help you stay on track.

Superannuation remains one of the most tax-effective ways to save for retirement. 

With the right strategy in place, you can make the most of government incentives, contribution options, and special provisions that can enhance your long-term financial security. It’s important to note that this is general advice only—always seek tailored guidance that suits your personal circumstances.

Key Super Strategies to Explore Before EOFY

1. Salary Sacrifice Contributions
   If you’re employed, contributing to your super through salary sacrifice can be an effective way to reduce your taxable income and boost your retirement savings at the same time. These pre-tax contributions can offer a tax-effective way to build your super balance over time.
2. Personal Contributions with Tax Deduction
   Making voluntary personal contributions to your super and claiming a tax deduction may be an option worth exploring. This strategy can be beneficial if you’ve received income from other sources or if you’re self-employed.
3. Government Co-Contribution
   Eligible low to middle-income earners who make after-tax contributions to their super may qualify for a government co-contribution. This incentive is designed to encourage individuals to invest in their future, with the government matching part of their contribution.
4. Downsizer Contributions
   If you’re over a certain age and have sold your main residence, you might be eligible to contribute part of the proceeds to your super without the usual contribution limits. This strategy can provide a one-off boost to your retirement savings and does not count towards standard contribution caps.
5. Catch-Up and Bring-Forward Options
   If you haven’t made the most of your super contribution caps in previous years, you may be able to take advantage of rules that allow you to “catch up” or “bring forward” additional contributions. These options can be especially useful after periods of lower income or time out of the workforce.

Why Working with Your Financial Adviser Matters

EOFY is the ideal time to sit down with your financial adviser and accountant to review your goals and make sure you’re maximising your available opportunities. These professionals can help you determine your eligibility for specific strategies, track your contributions, and ensure your approach aligns with your broader financial plan.

Timing is critical—some actions need to be finalised well before June 30—so it’s wise not to leave your planning to the last minute.

Top 5 Questions to Ask Your Adviser Before EOFY

1. Have I used all my available contribution caps this year?
   Understanding your limits can help you contribute effectively without incurring penalties.
2. Am I eligible for any government incentives or offsets?
   Your adviser can help identify benefits like co-contributions or tax offsets.
3. Would salary sacrifice or personal contributions work for me this year?
   These strategies can be tailored to suit your income and retirement goals.
4. Could I take advantage of the downsizer contribution?
   This could be relevant if you’ve recently sold your home and are looking to boost your super.
5. What should I prioritise before the EOFY deadline?
   A clear action plan can ensure you don’t miss out on valuable opportunities.

Final Thought

EOFY is more than just a date on the calendar—it’s a chance to take meaningful steps toward a more secure financial future. By reviewing your strategy and speaking with your adviser, you can make informed decisions that help you get the most out of your super.

If you haven’t scheduled a review yet, now’s the time. EOFY is a window of opportunity—make sure you’re ready to take advantage of it.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)