Boost your self managed superannuation fund with these tips
As the financial landscape continues to evolve, it’s essential to stay informed about the latest opportunities to enhance your self managed superannuation fund.
Key strategies to increase your superannuation 2023
Let’s take a look at some of the ways that you can build up your retirement nest egg.Pre-Tax Contributions
Pre-tax concessional contributions remain a valuable tool for growing your self-managed superannuation fund. The concessional contributions cap for 2023 is set at $27,500. However, the carry-forward rule allows you to exceed this limit if you have a total super balance of less than $500,000. Unused amounts can be accumulated for up to five years, providing an opportunity to make additional contributions. It’s important to stay within the cap to avoid tax implications, as any excess contributions are added to your taxable income.Work Test Exemptions and Personal Deductible Contributions
Since 1 July 2022, individuals under the age of 75, are allowed to make all types of contributions, except downsizer contributions, which have specific age and eligibility conditions. The removal of the work test requirement means you don’t have to fulfil the 40-hour gainful employment criteria to make or receive non-concessional super contributions and salary sacrificed contributions. As you reach the age of 75 and beyond, your self managed superannuation fund can still accept compulsory employer contributions and downsizer contributions, subject to meeting the downsizer eligibility conditions. Additionally, within the 28 days following the end of the month in which you turn 75, your fund can accept voluntary employer contributions, such as salary sacrifice contributions, other amounts paid by your employer to your super fund, and various member contributions, including personal contributions and spouse contributions.Downsizer Contributions
Take advantage of the lower eligible age for downsizer contributions, reduced from 60 to 55 in 2023. By contributing up to $300,000 (each spouse) from the proceeds of selling your home to your self managed superannuation fund, you can boost your retirement savings and enjoy potential tax benefits.Superannuation Guarantee Increase
From 1 July 2023, eligible workers will benefit from a rise in Superannuation Guarantee contributions. The rate will increase from 10.5% to 11%, providing a greater opportunity to grow your superannuation savings and secure a more comfortable retirement.
Salary Sacrifice
Consider setting up a salary-sacrifice arrangement to make regular contributions to your self managed superannuation fund. This allows for automatic contributions, ensuring disciplined and consistent growth. By employing the concept of dollar-cost averaging, you can navigate market volatility and build exposure to growth assets over time.Spouse Contributions & Splitting
Maximize the benefits of spouse contributions by splitting up to 85% of your concessional contributions. This strategy can equalize balances between spouses, optimize tax-free benefits, or provide shelter from Social Security means testing.
