Super countdown: Nerida Cole

These lastminute checks will ensure you make the most of changing benefits

In less than 30 days the biggest changes to super in a decade take effect. That’s not a lot of time but there are some last-minute checks you can do to make sure you clear the deadline unscathed. Even if the new rules don’t affect you, reviewing your eligibility for valuable super benefits and concessions before June 30 can help turbocharge your super.

Last opportunity

The limits to put money into super are shrinking, making this month the last opportunity to contribute after-tax savings of up to $180,000 or, if you are under 65 and can use the bring-forward rule, up to $540,000. From July 1 the limit drops to $100,000pa (or up to $300,000 using the bring-forward rule) and you won’t be able to make any non-concessional contributions if you have more than $1.6 million in total super. Super remains very tax effective, so to take advantage of the current generous limits make sure your bank transfers and deposits occur at least seven days before June 30, so the money hits your super fund in time.

Maximise contributions

If you’re a high-income earner or worried about capital gains tax from the sale of an investment property or share portfolio, there’s still time to make concessional tax-deductible contributions to super. Up to $35,000 can be made via salary sacrificing or self-employed contributions if you’re 50-plus, with $ 30,000 available to under-50s. With tax savings up to $11,900 available to some, check with your accountant and super fund about what you can claim and that the correct paperwork is submitted. If you have significant capital gains tax and not much employment income, ask your accountant about contribution reserving.

Comply with $1.6m cap

If you’re a retiree with more than $1.6 million, you need to provide instructions to your super fund on how you will comply with the new cap. If you miss the June 30 deadline you may incur penalties from the ATO. There are several options, such as re-allocating money to a spouse or withdrawing funds from super. But rolling amounts above the cap back to accumulation is expected to be the most popular solution because it’s tax-efficient and administratively easy. In deciding which accounts to roll back, check your Commonwealth Seniors Health Care Card status and consider your estate planning preferences.

Review TTR pension

Transition to retirement income streams faces increases to internal tax rates from July 1. If cash flow is important, you may wish to keep this account going, even though your super fund will pay some additional tax. However, if the changes mean a re-think to your strategy you can stop the account – but this decision doesn’t need to be made until after July 1. Check with your fund provider what forms are required and if new fees will apply.

Other strategies

Even if you’re not impacted by the super reforms, there are a number of valuable strategies that can help rocket your savings. Remember that super is locked away until retirement, so check cash flow and debt levels before contributing extra.

• Couples should review eligibility for spouse splitting, which is a powerful way to keep account balances growing, particularly for stay-at-home mums.

• The spouse contribution tax offset also encourages couples to work together to boost their overall retirement assets.

• Co-contribution payments see the government chip in to boost your super if you meet certain criteria.

Overall, from July 1, savers who can maximise the concessions available will get more bang for their buck.