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Five EOFY superannuation tips for healthcare professionals

With the end of the fiscal year fast approaching, financial advisory firm The Moreton Group has advised some of her health care clients to make extra contributions to their super, which may help them to retire earlier.

Cameron Dickson, Managing Director of The Moreton Group, said that contributing to super is a great way to reduce taxable income and, in most cases, grow your retirement nest egg. “Some health care workers can increase their tax return by making a tax-deductible transfer into their super fund of their savings before the end of the fiscal year,” he said.

Providing subannuation contributions can take months of working life. “For example, a recent 55-year-old registered nurse with $ 250,000 currently in her superaccount had projections of a superbalance of $ 539,964 at 65 if they made no additional contributions,” Dickson said.

“The projections also illustrated if this nurse would contribute $ 1,000 each year to EOFY until they retired, their projections showed that they could retire with $ 553,051, allowing more financial freedom in their retirement or even the opportunity for months retire sooner than they originally planned.

“The benefits of contributing to super can be realized long before retirement, because contributions are taxed differently than your normal income, with our registered nurse projected to recover a tax 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 personalized advice can help get a clearer picture of retirement needs.

Dickson suggested five tips for healthcare professionals to make their EOFY ‘super’:

  1. Reduce your taxable income by sacrificing salary in super:
    • Ask your employer if they offer salary offers.
    • Let your employer / account team know how much you want to contribute each salary.
  2. Contribute to super before June 30 and claim them back at tax:
  3. Get a government top-up:
    • If you are eligible, you will receive a maximum of 50c for every dollar extra you contribute to your super account and will not claim a tax deduction, up to a maximum of $ 500 through the Government Co-contribution Scheme.
    • Contribute to your super prior to June 30th.
  4. Make a Spousal Contribution:
    • If you are eligible, you can contribute to your spouse’s super and claim a tax compensation of up to $ 540.
    • Fill in the details about the super contributions made on behalf of your spouse in your tax return.
    • Submit your tax return.
  5. Invest your tax return in super:
    • Make sure you are eligible.
    • Contribute to your super once you receive your tax return.
    • Fill out a notice of intent to request or change a deduction for personal contribution form (NAT 71121) to your super fund and receive an acknowledgment.
    • Claim this contribution next year.

Image credit: © stock.adobe.com/au/Prostock-studio

Five EOFY superannuation tips for healthcare professionals

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