Superannuation Discussion + market volatility

[VPS]

I always check my super at the beginning of the month. Not a good move today

 

[Pushka]

I always check my super at the beginning of the month. Not a good move today

Mine wasn't as bad as I expected it to be.

 

[NM]

I always check my super at the beginning of the month. Not a good move today

April Fool!!

Hopefully it is higher than it was 01 April 2025.

 

[CaptJCool]

I always check my super at the beginning of the month. Not a good move today

Looking looking

 

[SydneySwan]

I always check my super at the beginning of the month. Not a good move today

That shows you are engaged ..... as you should be! My industry fund has an app so it is super easy to check every day. which is probably a bit over the top!!

 

[Quickstatus]

My impression was that our super fund would have cleared and closed the accumulation account if we'd nominated full transfer to pension phase.

Of course (as you know) any amount above the transfer balance cap remains in the accumulation account

so it is super easy to check every day

I check every quarter

 

[hydrabyss]

Also there is a super split capability from 1 spouse to another - called spouse super split.
You can split 85% of your concessional super to your spouse in any one financial year but the splitting occurs in the next financial year after the concessional contribution. The split does not change the concessional cap for both spouses. That means the receiving spouse can have their own concessional cap plus the split.
The receiving spouse must be 60-65 yrs and not retired.

This maybe something to consider doing but just checking and there appears there maybe an age limit.

 

[Quickstatus]

appears there maybe an age limit.

Yes as I said above, the receiving spouse has to be 65 or less and working

Potentially if spouse is 64, you could split your concessional contribution from last financial year (2024-2025) and then in 2027 when spouse is 65 you could split the concessional contribution for financial year 2025-2026. But make sure the splits occur before their click over to 65

So potentially 2x 0.85 x 30,000 =$51,000 that spouse can receive on top of their own concessional super contributions. Your super balance reduces by same amount

 

[hydrabyss]

You can actually do one year of $120,000 (not a cent over that) in June, must hit her super fund by at latest June 30 2026, earlier to be sure. . That means it appears there. Then in July you can do the $360,000. Just make sure you are using exactly the right terms when you lodge it.

You cannot add to a pension super account, only an accumulating super account. So you need to make sure you don't convert all the super account into a pension one so you can keep adding to it.

This is what Chat tells me. Waiting on the damn accountant to get back to me.....

This seams to be the simplest method and least amount of work.

 

[Quickstatus]

If income is $40K the tax is $3488
This means the total tax % is 8%
There is no tax advantage to salary sacrifice more concessional super in addition to employers contribution. as concessional super as concessional contributions are taxed at 15% at entry.

The spouse split is taxed via your super account first before it is split.

 

[VPS]

April Fool!!

Hopefully it is higher than it was 01 April 2025.

Sadly, no because I have taken some capital out of it

 

[VPS]

That shows you are engaged ..... as you should be! My industry fund has an app so it is super easy to check every day. which is probably a bit over the top!!

Daily is too much. Monthly is fine.

 

[NM]

Sadly, no because I have taken some capital out of it

Well that may have been a good move - if you took it out a month or more ago.

 

[Brissy1]

If income is $40K the tax is $3488
This means the total tax % is 8%
There is no tax advantage to salary sacrifice more concessional super in addition to employers contribution. as concessional super as concessional contributions are taxed at 15% at entry.

The spouse split is taxed via your super account first before it is split.

Plus 2% med levy. Less the LITO.
Copied from Superguide...
"earn $37,500 or less you’ll get the full LITO of $700. This amount reduces by 5 cents for each dollar earned over $37,500, and then by 1.5 cents for every dollar over $45,000" and
"The $700 Low Income Tax Offset (LITO), combined with the tax-free threshold of $18,200, effectively allows working Australians to earn up to $22,575 for the 2025-26 financial year before they need to pay any income tax. Medicare Levy is not payable until a taxpayer has annual income of $26,000 or more"

So, having contributed an intended non-concessional amount before 30 June, a plan might be for her to complete (but not lodge) her 25/26 return, then put in the "Notice of intent to claim... a deduction..." form for that portion of the non-concessional contribution made which will get her income down to $26k ; get acknowledgement, claim deduction, lodge. Concessional contribution limit, inc employer, shouldn't be an issue at original income indicated.

Small bikkies (3% saving) but very little effort (less than my typing this) as the contribution has already been made; fill out a form, then a few clicks on computer if diy tax return after you get acknowledgement.
Just a thought, I'm not an accountant, I've probably missed something, never follow advice from social media.

 

[Quickstatus]

Small bikkies (3% saving)

The marginal tax rate be reduced to 15% if the Guvment does not change its fiscal plans.

I think for low income earners where a significant portion of income is below the tax free threshold, the total tax % rather than marginal tax % is actually a better way to look at the relative benefit of concessional contributions

 

[Brissy1]

Neat thing about deductions is that it comes off individual's top marginal rate. As we know.
Usually doing tax stuff, for me, comes down to reward for effort, I don't bother with stuff like spouse contributions, (and I don't deliver my bottles to get 10c back). I do assist MissB with gov co-contribution (to also help teach financial literacy).

In this eg is the paperwork of transferring $11,000 from non-concessional to concessional worth $330? YMMV but knowledge is nice to have.

 

[Quickstatus]

Neat thing about deductions is that it comes off individual's top marginal rate. As we know.

Yes but there are no net deductions in this context.

 

[Happy Dude]

Also, any contribution greater than about $20k in a year, will result in a taxable income below the tax free threshold, resulting in paying the 15% contribution tax while the marginal tax rate is zero…

So my 15yo daughter putting in $1000 a year into her super to get the $500 co-contribution would pay the 15% contribution tax too, even though her income would be less than the tax free threshold?

 

[Beer_budget]

So my 15yo daughter putting in $1000 a year into her super to get the $500 co-contribution would pay the 15% contribution tax too, even though her income would be less than the tax free threshold?

Yes, but the super co-contribution is significantly more than the tax, itself non-taxed and gets compounding benefits early. It's a solid super strategy, but not a tax minimisation one.

 

[There'sOnlyOneJimmy]

So my 15yo daughter putting in $1000 a year into her super to get the $500 co-contribution would pay the 15% contribution tax too, even though her income would be less than the tax free threshold?

There won’t be any tax on the contribution. The Govt co-contribution is triggered by making a non-concessional contribution, which doesn’t attract the 15% concessional contributions tax..