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“Just keep swimming(working)”, As a mum and part time worker it’s very hard to have a healthy superannuation balance. I need to go back full time once my kids have finished high school.
Why wait until they finish high school? My mother worked all our life, she was a single mother. Yet she paid off her house in 10 years at 18% interest. Needless to say, she taught us valuable lessons about the value of money. She scrimped and saved every penny she could. We didn’t have silly luxuries like soft drink or junk foods in the house, instead she put those dollars into the house. Your kids learn from what they see…I saw that money was important & so I’ve never been frivolous with it. And now as an adult, I also don’t buy crap. I am very conscious of balancing a need with a want. The only difference is I went and got an education so I have more money, and I’m able to travel etc. but I still save and don’t spend on “wants”. Show your kids how to do it, you’ll be doing them a favour 😊
@@ConstructionHoney and have your money tied up (illiquidity - for which you get nothing) and gain a return which has an historically 2% p.a. long term return lower than the stock and financial markets.
@@ConstructionHoneysure if I want to pay land taxes, rates, insurance and deal with having the place rented out almost all the time. I prefer the simplicity of the Stockmarket for my super strategy.
This changing the goal posts constantly is exactly why I've never been a fan of retirement funds, my mum started selling retirement fund plans when it first kicked off and the big government sell promise was "it will never be taxed" how we have fallen since then !!!
The issue with the way superannuation has been implemented in Australia is its complexity. IN order to maximise its benefits you need to expend a lot of effort understanding the rules and keeping up with the changes. As a result I understand why people do not like it. If you do understand it and make the correct decisions, it can assist in significantly reducing the tax you pay. This savings can go to your retirement. Most countries have complex taxation and social security rules, the German system is very complex, but I personally feel it provides a very good outcome. The Australian system is good as well, but if you are lazy or not very smart you will be screwed. At least in Germany that does not occur as much.
@@peterfmodel I'd agree it is a little complicated, but the virtue of having large sums of money generating income and that income not being taxed cannot be overstated. Any income from investments in housing or shares is taxed (admittedly share income has the imputation credits) but it is still taxed. Super is not txed at all when you start your pension.
@@Talyessin63 we are paying for that you realise. In concessions for super. If they stopped the concessions and paid that into pensions, the pension would double tomorrow. I’m sure most would be happy with that.
Yep! That age old rule…don’t trust someone else with your money. Gotta have 100% control of all financial decisions. That way if you F it up, it’s on you. But chances are you won’t F it up, coz it’s on you 😂
If you are in the unfortunate position of inheriting form a parent, then this is the way to supercharge your superannuation. Apart from that, yes, it's unlikely you have this sort of cash rolling around in your pocket.
@@someoneunknown1609 Incorrect. The medium gross wage in Australia is around $68,000. This means that the maximum an average person can save each is much less than $5,000 per year.
Super! Great Job! Your presentation is both clear and visually engaging. Useful information on the changes particularly, the bring forward rules on the non-concessional and the limitations.
How old are you ? Typically withdrawing all your super isn’t a good idea because you would be moving it into a higher tax environment. Unless of course you were going to spend it all on something but then again, is that a good idea too?
Some of these numbers are just depressing. I was dismayed at my own situation thinking about someone doing so well they have 330k sitting around that could be a non-concessional contribution, and then there was talk of those same people having 1.6+ million already in super as well....
My situation was also not very healthy until I downsized my house and moved from NSW to QLD to somewhere much cheaper. I was able to put the difference into a combination of downsizer-allowance ($300,000) and non-concessional rollover contributions of $330,000 and have been able to retire early. There are some really useful options to increase your super if you are a homeowner and don’t mind moving.
The better an Australian does financially, the bigger cut the government takes. Super compounding over 40 years will do really well for the individual, especially if they contribute more when they are younger, and are in a low cost fund that allows index tracking investment options. The non concessional amounts are usually someone downsizing the family home and already with 45-50 years working life and investing. Can I ask your rough age?
With the SG increase watch out that your employer doesn't reduce your take home pay to compensate for the extra 0.5% they have to contribute. Some employers calculate on 'total remuneration' so effectively you are paying the extra contribution not them
Depends on how your contract is written. If your compensation package is "$100,000 inclusive" or something similar then your take home will be reduced. If it's "$100,000 + super" then your take home pay should not be reduced.
I don’t understand how increasing the amounts you can pay into super as of 1st July is limiting people’s ability to gain wealth or how it is corrupt! Can you explain your comment?
@catrionaharvey7371 Sorry, it's in reference to how much you can put in depending on how much you already have in there. That's what pisses me off. The government wants to limit everything we do to gain wealth. Even when it comes to super.
@kevingould6725 does everyone have to have the same amount, do they Mr Genius? You're an idiot. If I sacrifice more of my money than you do for my retirement, I shouldn't be penalised for it.
@@Beanie7371 The problem is the fact that THERE IS A CAP. The cap was introduced because millionaires like Gina Rinehart would salary sacrifice her salary into the tax free bracket. She would then take out a loan against her property to live on. They used salary sacrifice as a tax dodge. They had to increase the cap because they're increasing the employer contributions. Employer contributions should not be included in any cap.
Unfortunately my employment remuneration contract is “Total Employment Cost”. I’ll be getting 0.5% less take home pay to pay the 0.5% super😢. But I’ll be chipping in up to the full $30k anyway. Here’s hoping for a measly pay rise
I dont think its legal to reduce your current take home to meet new increased super payments. They can hire you as a package but not reduce your current pay due to a raise of super. I'm not 100% but go check it out.
What happens to concessional contributions once you hit the $500k super balance, do they cease, or do they scale down? (if there are multiple impacts once you hit $500k then it might be worth doing a video just on this topic). Thanks 👍
Concessional contributions can be made to super despite having a balance over $500k, but you lose ability to utilise your unused contribution amounts. Stay tuned for the next video which discusses this in detail.
Yes, you can. You'll need a SMSF accountant. They'll set up a SMSF & a Bare Trust (if you are going to borrow to buy the property.) Try C2 financial n talk with John Colligon
Im a 59 year old australian citizen living in Bali and Running and Owning a Restaurant. My question is, can i access ALL my Superannuation due to officially retired from working in Australia or does the Australian government not include working overseas as a reason to access my Superannuation due? Thanks in advance Raymond Rowe
Great summaries, thank you Chris. Two questions: If aged 60 & have your super in Pension Phase (Simple Account Based Pension), can you still add 'concessional contributions" to it?
I'm an oversea worker and want to know more about super but it sound all very complicated, even with the explanation it's hard to understand all the term when you don't know the jargon
Or if your willing to put in the time and log in to your super account, the amount invested in the share market is what you want to invest in the share market.
I am close to the maximum $1.9m cap. If i were to downsize my home, could I make a 'downsizer' contribution? Or am I better to delay the sale of the home until I have drawn down some of my capital in retirment?
This is a good overview, however if my memory serves me, the maximum contribution limit does include the employers concessional contributions. Thus if the total concessional amount exceeds $27,500 (past) $30,000 (future) the ATO will ask you to pay back the concessional amount exceeding the limit. Still its good the concessional limit has increased to $30,000. The tax benefits of super is significant.
All these are changes to superannuation accounts in accumulation phase. I take it there’s no changes to those already struggling on an income phase account, yet.
Thank you valuable information - The government should allow individuals 55 and over to contribute more than 30k a year to their super in order to self fund their retirement
Hi SuperGuy, I haven't used up all the current year's cap of concessional contributions. Can I still make a large payment to my Superfund and lodge the intent to claim it on my tax?
Also apparently there is a rule where an additional 15% tax is payable if your taxable income + the amount you contribute to your Super in catch up concessional contributions exceeds $250K. Thanks ATO for seriously overcomplicating Superannuation.
Obviously this doesn’t apply to me. My wife has been paying into the same super for more than 30 years and she has about 150k. Mine is about 100k give or take. I cant afford to pay rent, get anywhere near those caps, and eat at the same time.
Hi Chris, was watching another of your videos where I'm sure you said that after you convert your super account from an accumulation to pension account you can still make contributions into your super account. Did I hear this correctly?
Superannuation is your account. It's yours. Your employers are obligated to pay superannuation if they employ you, which is the Superannuation Guarantee. Otherwise you are just bound to the standard limits of your concessional and non concessional contribution
How do you contribute to your fund using the carry forward rule...can you do it as a lump sum? And do you need to notify anyone that you're doing this beforehand eg ATO etc or just deposit $x'000 directly into your super fund?
If discussing topping up your concessional contribution it would be good if you covered how to do this ie you contribute post tax, inform your super provider and then claim the delta in your tax return to get the marginal vs. concessional tax?
Is this guide for millionaires only? Because most normal working people are struggling to even pay for their food let alone pay thousands of $ to their super account
@@precisi0n86 thats the point, look at what you are having to do just to get by. The other day i brought 2 Mandarins and they were $3, 1 onion was $1.70. I certainly can't afford to put extra money towards super. Because i have to eat.
@@precisi0n86 bud nothing is cheap anymore. I had been craving citrus fruit for almost 6 months and had been waiting for prices to drop all that time. I finally had to bite the bullet and get them. I am very much like you, i don't go out drink or smoke, i share house, i am a vegetarian so can't buy marked down meat. Can't remember last time i brought a barista cofee, probably over a year ago. My point is i am a very sensible spender and still struggle with full time job. Most people i know in my circle are in the same boat. Its all by design by the governments, every single country is in debt, but big question is to whom? Who the hell do we owe all this money to? Where are our ridiculous taxes going? There is no more bulk billing to even see a doctor, heck we don't even have free ambulance service unlike some developing countries. What is govt doing with all of our money?
I think I would like to know how my novedded.Leasing pretext car payments will be effected? I have been considering putting more into the pretext car payment.
Hi Chris, If we want to use up the Unused cap from 2018/19- do we need to submit the Notice of Intent to claim form BEFORE 1 July 2024? Or just make the contributions before the end of FY and then submit the form before the tax return is done? I would hate to miss out on this just from not having submit the form. Thank you!
Ideally you want to submit the form ASAP, but it's not essential. The form can be submitted after 30 June, but must be done before you submit your tax return, before the end of the next financial year, before any withdrawals are made, before any rollovers are completed and before any income streams are commenced.
Thanks for another unformative video ... Quick wuestion for temporary visa holdrr , when they leave Aus and claim super , how much is tax deducted and tax is deducted on profit or total super contribution? thanks
I think there is what's called a Transfer Balance Cap. This is the limit applied to the amount of your superannuation that can be transferred into your "pension" account. Currently that is sitting at 1.9m, assuming this is the first time you are starting such an account.
After little to no research my super merged with another super to create host plus. We all got taxed on the merge but my payments still go to the same abn so the only thing that changed was the name not where my money went so why would we all get charged a % of our total for a name change?
@@TheSuperdodgy I don't think that's what he is asking.If you already paid tax on that amount of money what's the point of putting it into super fund when you can do whatever you like with it.
@@mehmettemel8725 100%. You can do whatever. But if you are looking to invest it elsewhere, any profit and you'll pay your marginal tax rate on it 30% from 24/25. It's all about tax minimisation. Super is 15% . I mean if you have a lazy $120K laying around to invest I'd want to halve the tax I pay on any earnings. Then there's the AUDI S8 560hp for $120K. Enjoy it while you can.
Hi i have a general question re payouts of life insurance from inside super and outside of super. 1 is a payout for life insurance OUTSIDE of super taxable? My partner inherited a payout oof life insurance from inside super and she was taxed approx 7000 from 37000.
Difficult to explain without knowing everything..but death benefits held within super that is paid to adult children are generally taxed on the components of the payout (there is a taxable portion and non taxable portion).
In my opinion, they should have employer contributions - uncapped, personal contribution - uncapped, salary sacrifice - capped at $15,000. They keep increasing the employer contributions every year, but don't increase the cap every year.
They just increased the cap to 30,000 from 27,500... Your employer contributions are part of your concessional If it was unlimited, imagine the tax loop for the high income earners. Person making 900k can easily contribute a large chunk and claim a tax deduction, that would be nuts.
@@venturingfinance9171 They should make the employer contribution what the government sets it to be, which will be 11.5% 1st July 2024. No more, no less. Some companies offer 12% as a perk, but that should be removed. Contribute as much as you want after tax. Salary sacrifice max $15,000. We want people to have some super when they retire.
I was hoping for information on the Co contributions, is that changing? As in the gov gives you up to $500 for your after tax contribution of $1000. Have those amounts remained the same?
Thanks Superguy !! 1 question, I have not put in the full amount of the 27500 this year combines with my employer and my salary sacrifice. How can I put in a 1 off top up to make 27500 and be able to claim it on tax? I filled out a notice of intent form but was denied by CBUS, is there another way i'm missing?
I'm in no way an authority but can speak to my experience only. CBUS did the same thing to me on a number of yrs and in all occasions it came down to an error on my part in filling out the notice of intent form. Your maximum allowable is your maximum allowable ie: 27.5k. They are not permitted to disallow it. Call them and ask why they declined it and I think you'll find it is due to an incorrectly filled form ( that in itself is wrong also. Why we have to fill these things out in such a convoluted manner rather than have it simplified.....sigh). Good luck
Yeah I'll give em a call tomorrow. I'll get them to help me fill it out. They sent me a letter denying me, when I rang them, i had to speak to someone who couldnt speak english very well. So I hope I dont get the same person.
You need to ensure you have made a personal contribution before submitting the intent form. Then, once the contribution is made, you need to submit the form notifying the super fund of how much of that contribution you would like to claim as a personal tax deduction. Good luck!
i'm a noob but what's the advantage of non-concessional contribution? Is the interest return better than term deposits? ...after all term deposit and non-concessional super's interests are taxed anyway 🤔
The earnings in your super are taxed at 15%. The interest in your term deposit is taxed at your marginal tax rate. So depending on what your marginal tax rate is, and when you need the money putting it in your super could be advantageous.
You can post-tax do the extra contribution, then notify the super fund you are going to claim it before doing your tax return, and then wait for their confirmation before doing your tax return then you will get the tax you paid on the amount you put in back.
When is the SG payment period changing? I believe at the moment employers only have to pay your SG payment quarterly. I heard something somewhere about SG payments changing to each pay period. Is this correct and if so when does it come into effect?
What’s the point of making non-concessional (after tax) contributions into superannuation? It doesn’t save on tax, so what benefit can I possibly get from it?
Overall before tax contributions are better because u only pay 15% tax however if you do a little bit of after tax (approx $600 a year) u can get like $300 free from the government in co contributions if u earn like under $50k
@@nathansmith5726 that’s good to know. Would be pretty difficult though to add $27,500+ per year into your super if your income was under $50K/year. Sounds like something a rich person could do in their house-wife’s super.
If you invest that money anywhere else you're paying your marginal tax rate on it. True once you drop it into super (15% tax )it's stuck there till preservation age. It's all about minimising tax. But if you think you'll need the coin down the road don't do it.
@@nathansmith5726 That makes sense for low income earners which gets extra government top up but why would anyone place $120k non concessional amount into super when you would have paid 30% or more tax already.I can understand if high returns was guaranteed.
Im a new Aussie(ex Indian). What I realised is, in Australia people who pay taxes are punished harder than those who evade. Get rid of cash, move digital and avoid tax leaks. Tax money is going down drains through inefficient free payments.
Is the SG employer contributions part of concessional contributions or separate? For example, I have made my own personal concessional contribution in a financial year of $27,500 as well as my maximum contribution cap limit of non-concessional contributions. Then I get employed in that same financial year and my employer needs to contribute to my Super fund. I want to make sure that i don't exceed the contributions cap limit. It seems from your video the SG contribution is separate but i got confused when you mention salary sacrificing by your employer into concessional contribution.
@@PhilInAustralia thanks, so if you've already maxed out your concessional contributions for a financial year, your employer cannot contribute more then. I have self contributed to my concessional contribution, so I would need to tell any new employer that they cannot contribute into my Super until the next financial year.
If you have not maxed out your concessional contributions in the last 5 financial years, you can still have the contributions this year from your employer. I don't think your employer can actually non contribute super to you. You just have to pay a bit more tax should you go over the concessional limit, but it's otherwise tax that you would have had to pay on your income anyway.
Your employer will have to contribute to your super and they must do so by very strict deadlines. If you exceed the cap and are unable to use unused cap amounts from previous years (or do not have any), then you will get an excess contribution notice in the mail and you can opt to withdraw the excess.
As I understand it, a corporate employer will be able to make salary sacrifice contributions in a fairly straight forward manner for you. A small employer probably can’t. In the latter case you’ll need to make post tax contributions to super, but put in a form with your super company that you will be claiming a tax deduction - this amount will be equivalent to having made salary sacrifice contributions and be subject to the max salary sacrifice cap.
Most employers should be able to do that for you, though I would suggest you ensure your employer has an impeccable record in remitting contributions on time before doing so.
I run a small business. All my employee has to ask is what they want salary sacrificed and i pay the difference into their super instead of their bank account. Make sure you log regularly into your super to make sure your boss has not mucked anything up.
Yes, non-concessional contributions can only be made up until 28 days after the end of the month in which you turn 75. Also, you need to be sure that your total super balance is below the relevant limits. superguy.com.au/superannuation-changes-2024-25/
@@SuperGuyAu nice for them. Probably not in my family’s future lol Not all of us get a clean run sans illness or accident or unexpected calamity courtesy of others.
![Superannuation Tax Changes at Age 60: What You Need To Know [Australia]](/img/1.gif)
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.superguy.com.au/super-tips/
Your clarification of the concessional contribution rule with regard to the 500k break point was very handy. Thanks.
Really appreciating the calm, clear presentation style of your videos. Thank you!
Glad you like them!
“Just keep swimming(working)”, As a mum and part time worker it’s very hard to have a healthy superannuation balance. I need to go back full time once my kids have finished high school.
Investment in property will get you a better growth
Or work more whilst they are at school. You don't have to wait for them to finish to earn more money.
Why wait until they finish high school? My mother worked all our life, she was a single mother. Yet she paid off her house in 10 years at 18% interest. Needless to say, she taught us valuable lessons about the value of money. She scrimped and saved every penny she could. We didn’t have silly luxuries like soft drink or junk foods in the house, instead she put those dollars into the house. Your kids learn from what they see…I saw that money was important & so I’ve never been frivolous with it. And now as an adult, I also don’t buy crap. I am very conscious of balancing a need with a want. The only difference is I went and got an education so I have more money, and I’m able to travel etc. but I still save and don’t spend on “wants”. Show your kids how to do it, you’ll be doing them a favour 😊
@@ConstructionHoney and have your money tied up (illiquidity - for which you get nothing) and gain a return which has an historically 2% p.a. long term return lower than the stock and financial markets.
@@ConstructionHoneysure if I want to pay land taxes, rates, insurance and deal with having the place rented out almost all the time. I prefer the simplicity of the Stockmarket for my super strategy.
This changing the goal posts constantly is exactly why I've never been a fan of retirement funds, my mum started selling retirement fund plans when it first kicked off and the big government sell promise was "it will never be taxed" how we have fallen since then !!!
can you explain more why you are not a fan?
The issue with the way superannuation has been implemented in Australia is its complexity. IN order to maximise its benefits you need to expend a lot of effort understanding the rules and keeping up with the changes. As a result I understand why people do not like it. If you do understand it and make the correct decisions, it can assist in significantly reducing the tax you pay. This savings can go to your retirement. Most countries have complex taxation and social security rules, the German system is very complex, but I personally feel it provides a very good outcome. The Australian system is good as well, but if you are lazy or not very smart you will be screwed. At least in Germany that does not occur as much.
@@peterfmodel I'd agree it is a little complicated, but the virtue of having large sums of money generating income and that income not being taxed cannot be overstated. Any income from investments in housing or shares is taxed (admittedly share income has the imputation credits) but it is still taxed. Super is not txed at all when you start your pension.
@@Talyessin63 we are paying for that you realise. In concessions for super. If they stopped the concessions and paid that into pensions, the pension would double tomorrow. I’m sure most would be happy with that.
Yep! That age old rule…don’t trust someone else with your money. Gotta have 100% control of all financial decisions. That way if you F it up, it’s on you. But chances are you won’t F it up, coz it’s on you 😂
This advice must be for CEOs and Politicians who have that sort of money! 🥊🥊🤷♂️
Yeah most people flat out affording groceries
wrong. this is normal pay
If you are in the unfortunate position of inheriting form a parent, then this is the way to supercharge your superannuation. Apart from that, yes, it's unlikely you have this sort of cash rolling around in your pocket.
yeah the *extra* contribution's being recommended here are more than many peoples super balances.
@@someoneunknown1609 Incorrect. The medium gross wage in Australia is around $68,000. This means that the maximum an average person can save each is much less than $5,000 per year.
Yep you covered a heap in 9 minutes but very informative. Thank you.
Glad it was helpful!
Super! Great Job! Your presentation is both clear and visually engaging. Useful information on the changes particularly, the bring forward rules on the non-concessional and the limitations.
Thank you!
Great summary Chris, very clear and concise. Thank you.
Very welcome!
Well I withdrew my super account this year they tried really hard to shift my money to anouther superfund but I didn't budge best thing I ever did.
How old are you ? Typically withdrawing all your super isn’t a good idea because you would be moving it into a higher tax environment. Unless of course you were going to spend it all on something but then again, is that a good idea too?
Some of these numbers are just depressing. I was dismayed at my own situation thinking about someone doing so well they have 330k sitting around that could be a non-concessional contribution, and then there was talk of those same people having 1.6+ million already in super as well....
My situation was also not very healthy until I downsized my house and moved from NSW to QLD to somewhere much cheaper. I was able to put the difference into a combination of downsizer-allowance ($300,000) and non-concessional rollover contributions of $330,000 and have been able to retire early. There are some really useful options to increase your super if you are a homeowner and don’t mind moving.
Yeah, I had to chuckle at those figures as well.
Best piece of advice ....
Don't be poor!
@@jonahtwhale1779 even better one, dont be a dick
The better an Australian does financially, the bigger cut the government takes.
Super compounding over 40 years will do really well for the individual, especially if they contribute more when they are younger, and are in a low cost fund that allows index tracking investment options.
The non concessional amounts are usually someone downsizing the family home and already with 45-50 years working life and investing.
Can I ask your rough age?
Well I am now 86 years old get a part old aged pension and my super.
This was super clear and helpful advice, great video!
No pun intended!? .... 😉
With the SG increase watch out that your employer doesn't reduce your take home pay to compensate for the extra 0.5% they have to contribute. Some employers calculate on 'total remuneration' so effectively you are paying the extra contribution not them
My employer a GOC was deliberately silent on this. I was amazed so many TEC employees were unaware of this.
Depends on how your contract is written. If your compensation package is "$100,000 inclusive" or something similar then your take home will be reduced. If it's "$100,000 + super" then your take home pay should not be reduced.
So well explained and so helpful!
Glad it was helpful!
Limiting people ability to gain wealth again. I'm over these corrupt government policy makers.
I don’t understand how increasing the amounts you can pay into super as of 1st July is limiting people’s ability to gain wealth or how it is corrupt! Can you explain your comment?
@catrionaharvey7371 Sorry, it's in reference to how much you can put in depending on how much you already have in there. That's what pisses me off. The government wants to limit everything we do to gain wealth. Even when it comes to super.
So having well over a million is not enough. You should be taxed.
@kevingould6725 does everyone have to have the same amount, do they Mr Genius? You're an idiot. If I sacrifice more of my money than you do for my retirement, I shouldn't be penalised for it.
@@Beanie7371 The problem is the fact that THERE IS A CAP. The cap was introduced because millionaires like Gina Rinehart would salary sacrifice her salary into the tax free bracket. She would then take out a loan against her property to live on. They used salary sacrifice as a tax dodge. They had to increase the cap because they're increasing the employer contributions. Employer contributions should not be included in any cap.
Great summary. Thanks!!
You're welcome!
Great summary. Thanks. Your TTR vid from a while back was light bulb moment too.
Glad it was helpful.
I never make contribution to my Super, every year the government fiddles around with it, you just don't know what will they do your Super next.
Super is a joke
Notice of intent and d12. My experience so many dont understand how it works and the timing of it all.
Agreed. It can be a costly thing to get wrong.
I'm never going to have to worry about those "limits" LOL
Ha ha! Probably because you spend your dosh on motorcycles.
Thanks for the info Superguy
No problem. Glad it's helpful.
Brilliant wrap up.
Thanks!
Unfortunately my employment remuneration contract is “Total Employment Cost”. I’ll be getting 0.5% less take home pay to pay the 0.5% super😢.
But I’ll be chipping in up to the full $30k anyway.
Here’s hoping for a measly pay rise
Mate, that's a bit rough. I've noticed this in job ads a bit more recently too. A bit sneaky tbh.
I dont think its legal to reduce your current take home to meet new increased super payments. They can hire you as a package but not reduce your current pay due to a raise of super. I'm not 100% but go check it out.
@oldmanMikehere it's not
What happens to concessional contributions once you hit the $500k super balance, do they cease, or do they scale down? (if there are multiple impacts once you hit $500k then it might be worth doing a video just on this topic). Thanks 👍
Concessional contributions can be made to super despite having a balance over $500k, but you lose ability to utilise your unused contribution amounts. Stay tuned for the next video which discusses this in detail.
I remember hearing if you can prove you can fund your own retirement you can access super early?
???
Start from :59
1.2k+.. Thanks and great info. I came across a website saying we can use our super to buy a home. Let me scan your playlist
Yes, you can. You'll need a SMSF accountant. They'll set up a SMSF & a Bare Trust (if you are going to borrow to buy the property.) Try C2 financial n talk with John Colligon
Be wary of people promoting this scheme.
Im a 59 year old australian citizen living in Bali and Running and Owning a Restaurant.
My question is, can i access ALL my Superannuation due to officially retired from working in Australia or does the Australian government not include working overseas as a reason to access my Superannuation due?
Thanks in advance
Raymond Rowe
Thanks , you're a Super Guy.
haha thanks!
Great summaries, thank you Chris. Two questions: If aged 60 & have your super in Pension Phase (Simple Account Based Pension), can you still add 'concessional contributions" to it?
Thanks! Contributions can't be made to a pension account. You would need a separate accumulation account to accept contributions.
@@SuperGuyAu Thanks heaps for your reply.
The Australian Asx 200 is only back to its levels from 10yrs ago. It's done nothing for 10yrs....
That’s incorrect
Great vid mate thank you!!
No problem! Thanks for watching.
I'm an oversea worker and want to know more about super but it sound all very complicated, even with the explanation it's hard to understand all the term when you don't know the jargon
Superannuation is invested on the stock market. When the stock market falls so does your super
Only a portion into stock market
Or if your willing to put in the time and log in to your super account, the amount invested in the share market is what you want to invest in the share market.
@user-lv4cp9tp2n, and when the stock market goes up, so does your super. And your point was?
This is super useful. Thanks
Glad it was helpful!
Thanks a lot. Well explained
You are welcome
Not a problem for most people.
Very useful video I think it can be applied
Great to hear!
I am close to the maximum $1.9m cap. If i were to downsize my home, could I make a 'downsizer' contribution? Or am I better to delay the sale of the home until I have drawn down some of my capital in retirment?
Thank you
You are welcome
Great update 👍🙏
Thanks for watching.
This is a good overview, however if my memory serves me, the maximum contribution limit does include the employers concessional contributions. Thus if the total concessional amount exceeds $27,500 (past) $30,000 (future) the ATO will ask you to pay back the concessional amount exceeding the limit. Still its good the concessional limit has increased to $30,000. The tax benefits of super is significant.
Thanks
No problem!
Amazing video! Earned my sub!
Thanks for the sub!
As a contractor who works for a company that pays my super, can they reduce your wage by 0.5% to allow for the increase in super payments?
No
You contract your labour by the sounds. You're not an employee. So yeah probably.
It may depend on your agreement. Some agreements state the contract value to be a total figure inclusive of super, whereas other say plus super.
@@SuperGuyAu thanks I will check. I’m assuming if inclusive I will be footing my own super increase lol.
All these are changes to superannuation accounts in accumulation phase. I take it there’s no changes to those already struggling on an income phase account, yet.
There are no changes to income accounts coming up that I can think of.
Big help thanks for the info
No problem!
Great info. Will use the non concessional in the near future. Very helpful.
Glad it helped
Thank you valuable information - The government should allow individuals 55 and over to contribute more than 30k a year to their super in order to self fund their retirement
You're welcome!
Economic investigator Frank G Melbourne Australia is following this content cheers Frank
Thanks for following Frank
Hi SuperGuy, I haven't used up all the current year's cap of concessional contributions. Can I still make a large payment to my Superfund and lodge the intent to claim it on my tax?
The "large payment" is for previous years unused concessional contributions. And yes the balance was under 500K last June 30
Also apparently there is a rule where an additional 15% tax is payable if your taxable income + the amount you contribute to your Super in catch up concessional contributions exceeds $250K. Thanks ATO for seriously overcomplicating Superannuation.
I can’t imagine there are many who can contribute anywhere close to their non-concessional cap….
You'd be surprised
Question, so if salary sacrifice exceeds the 27,500 but you have space from last years unused do you need to change or don't worry as its fine 👍
these caps are certainly Corporate rate friendly
they are what they are!
Obviously this doesn’t apply to me. My wife has been paying into the same super for more than 30 years and she has about 150k. Mine is about 100k give or take. I cant afford to pay rent, get anywhere near those caps, and eat at the same time.
1:18 thats big of them! Are they gonna raise my pay so i can afford to put more into them too?
Hi Chris, was watching another of your videos where I'm sure you said that after you convert your super account from an accumulation to pension account you can still make contributions into your super account. Did I hear this correctly?
How many people will have their total remuneration stay the same, and just take home less?
The ones who have an employment agreement where their salary 'includes super'
I have job before,but when we moved in other state i don't have a job yet,can i continue pay my superannuation?
Superannuation is your account. It's yours.
Your employers are obligated to pay superannuation if they employ you, which is the Superannuation Guarantee.
Otherwise you are just bound to the standard limits of your concessional and non concessional contribution
What does all these changes mean for those hit by div293 tax?
How do you contribute to your fund using the carry forward rule...can you do it as a lump sum? And do you need to notify anyone that you're doing this beforehand eg ATO etc or just deposit $x'000 directly into your super fund?
If discussing topping up your concessional contribution it would be good if you covered how to do this ie you contribute post tax, inform your super provider and then claim the delta in your tax return to get the marginal vs. concessional tax?
This video is coming up next
I like it how the non-positive feedback gets removed by this Guy.
I don't remove any comments unless they include foul language or are scam comments. I'm completely fine with non-positive feedback.
It would be handy if you said in your heading what country you were talking about.
Australia
It's obviously Australia
Super stuff Super guy
Thanks!
Imagine having a spare $300k to pop in your super each year
would be nice!
Is this guide for millionaires only? Because most normal working people are struggling to even pay for their food let alone pay thousands of $ to their super account
@@precisi0n86 thats the point, look at what you are having to do just to get by. The other day i brought 2 Mandarins and they were $3, 1 onion was $1.70. I certainly can't afford to put extra money towards super. Because i have to eat.
@@precisi0n86 bud nothing is cheap anymore. I had been craving citrus fruit for almost 6 months and had been waiting for prices to drop all that time. I finally had to bite the bullet and get them. I am very much like you, i don't go out drink or smoke, i share house, i am a vegetarian so can't buy marked down meat. Can't remember last time i brought a barista cofee, probably over a year ago.
My point is i am a very sensible spender and still struggle with full time job. Most people i know in my circle are in the same boat.
Its all by design by the governments, every single country is in debt, but big question is to whom? Who the hell do we owe all this money to? Where are our ridiculous taxes going? There is no more bulk billing to even see a doctor, heck we don't even have free ambulance service unlike some developing countries. What is govt doing with all of our money?
I think I would like to know how my novedded.Leasing pretext car payments will be effected?
I have been considering putting more into the pretext car payment.
With these increase of SG rates, employers don't do a payrise and the govt has stuffed up super.
Hi Chris, If we want to use up the Unused cap from 2018/19- do we need to submit the Notice of Intent to claim form BEFORE 1 July 2024? Or just make the contributions before the end of FY and then submit the form before the tax return is done? I would hate to miss out on this just from not having submit the form. Thank you!
Ideally you want to submit the form ASAP, but it's not essential. The form can be submitted after 30 June, but must be done before you submit your tax return, before the end of the next financial year, before any withdrawals are made, before any rollovers are completed and before any income streams are commenced.
Well explained. Very informative. Just need to win Lotto now 😅🎉
Thanks! Good luck on the lotto!
Thanks for another unformative video ... Quick wuestion for temporary visa holdrr , when they leave Aus and claim super , how much is tax deducted and tax is deducted on profit or total super contribution? thanks
How do you make extra lump sum contributions? e.g. If i X amount now, can i claim that in my upcoming tax return?
This article should help superguy.com.au/superannuation/how-much-super-can-i-contribute/
What happens to your super if your balance exceeds $1.9M going into the retirement phase?
I think there is what's called a Transfer Balance Cap. This is the limit applied to the amount of your superannuation that can be transferred into your "pension" account. Currently that is sitting at 1.9m, assuming this is the first time you are starting such an account.
You start of easy then u say but wait there's more😊
I try to keep it simple where possible. Complexity hurts my head.
After little to no research my super merged with another super to create host plus. We all got taxed on the merge but my payments still go to the same abn so the only thing that changed was the name not where my money went so why would we all get charged a % of our total for a name change?
What s the point of paying the non concessional contribution? Did nt you already pay taxes for them?
You don't pay tax for a second time. The non-consessional cap is now $120K for 2024/25.
@@TheSuperdodgy I don't think that's what he is asking.If you already paid tax on that amount of money what's the point of putting it into super fund when you can do whatever you like with it.
@@mehmettemel8725 100%. You can do whatever. But if you are looking to invest it elsewhere, any profit and you'll pay your marginal tax rate on it 30% from 24/25.
It's all about tax minimisation. Super is 15% . I mean if you have a lazy $120K laying around to invest I'd want to halve the tax I pay on any earnings.
Then there's the AUDI S8 560hp for $120K. Enjoy it while you can.
Here's a video I prepared earlier that answers your question ruclips.net/video/EAe_8w4Tyhc/видео.htmlsi=FFt-6ubpsQh47is4
Why should there be any limits.
There never used to be. What people were doing is salary sacrifcing their whole wage to super then drawing low income support from the govt.
Hi i have a general question re payouts of life insurance from inside super and outside of super. 1 is a payout for life insurance OUTSIDE of super taxable? My partner inherited a payout oof life insurance from inside super and she was taxed approx 7000 from 37000.
Difficult to explain without knowing everything..but death benefits held within super that is paid to adult children are generally taxed on the components of the payout (there is a taxable portion and non taxable portion).
@@venturingfinance9171 thank you
In my opinion, they should have employer contributions - uncapped, personal contribution - uncapped, salary sacrifice - capped at $15,000. They keep increasing the employer contributions every year, but don't increase the cap every year.
They just increased the cap to 30,000 from 27,500... Your employer contributions are part of your concessional
If it was unlimited, imagine the tax loop for the high income earners. Person making 900k can easily contribute a large chunk and claim a tax deduction, that would be nuts.
@@venturingfinance9171 They should make the employer contribution what the government sets it to be, which will be 11.5% 1st July 2024. No more, no less. Some companies offer 12% as a perk, but that should be removed. Contribute as much as you want after tax. Salary sacrifice max $15,000. We want people to have some super when they retire.
Clear and concise
Thank you for the great video!
Glad it was helpful!
This is a super video
Thank you!
I was hoping for information on the Co contributions, is that changing? As in the gov gives you up to $500 for your after tax contribution of $1000. Have those amounts remained the same?
Yes, co contribution amounts are remaining the same, but the thresholds are changing. See here superguy.com.au/superannuation-changes-2024-25/
@@SuperGuyAu Thank you
Thanks Superguy !! 1 question, I have not put in the full amount of the 27500 this year combines with my employer and my salary sacrifice. How can I put in a 1 off top up to make 27500 and be able to claim it on tax? I filled out a notice of intent form but was denied by CBUS, is there another way i'm missing?
I'm in no way an authority but can speak to my experience only. CBUS did the same thing to me on a number of yrs and in all occasions it came down to an error on my part in filling out the notice of intent form. Your maximum allowable is your maximum allowable ie: 27.5k. They are not permitted to disallow it. Call them and ask why they declined it and I think you'll find it is due to an incorrectly filled form ( that in itself is wrong also. Why we have to fill these things out in such a convoluted manner rather than have it simplified.....sigh). Good luck
Yeah I'll give em a call tomorrow. I'll get them to help me fill it out. They sent me a letter denying me, when I rang them, i had to speak to someone who couldnt speak english very well. So I hope I dont get the same person.
You need to ensure you have made a personal contribution before submitting the intent form. Then, once the contribution is made, you need to submit the form notifying the super fund of how much of that contribution you would like to claim as a personal tax deduction. Good luck!
@@SuperGuyAu the company puts x amount, and i salary sacrifice x amount. Is that what you mean?
i'm a noob but what's the advantage of non-concessional contribution? Is the interest return better than term deposits? ...after all term deposit and non-concessional super's interests are taxed anyway 🤔
The earnings in your super are taxed at 15%. The interest in your term deposit is taxed at your marginal tax rate. So depending on what your marginal tax rate is, and when you need the money putting it in your super could be advantageous.
Appreciate the reply. I still can't get my head around having to pay tax on the interest I gained off tax-paid income that I saved 😵💫
This might help explain the benefits ruclips.net/video/EAe_8w4Tyhc/видео.htmlsi=-Cyb9a1uX65cGCzo
It's the same as if you were to invest the amount and earn interest in your personal name - only it's likely the tax would be higher.
so you salary sacrifice up to the carry forward unused cap?
You can post-tax do the extra contribution, then notify the super fund you are going to claim it before doing your tax return, and then wait for their confirmation before doing your tax return then you will get the tax you paid on the amount you put in back.
Can a retiree still earn $11,000 per annum wage wise without it deducting from your pension?
When is the SG payment period changing? I believe at the moment employers only have to pay your SG payment quarterly. I heard something somewhere about SG payments changing to each pay period. Is this correct and if so when does it come into effect?
1 July 2026 - however, while this was announced, it is not yet law
Please add the tax authority/country it pertains to - saves time for all.
Talking about Australia
What’s the point of making non-concessional (after tax) contributions into superannuation?
It doesn’t save on tax, so what benefit can I possibly get from it?
those money are earning in a low tax environment. 15% on earnings instead at your marginal tax rate. Over time this will grow a lot faster.
Overall before tax contributions are better because u only pay 15% tax however if you do a little bit of after tax (approx $600 a year) u can get like $300 free from the government in co contributions if u earn like under $50k
@@nathansmith5726 that’s good to know.
Would be pretty difficult though to add $27,500+ per year into your super if your income was under $50K/year.
Sounds like something a rich person could do in their house-wife’s super.
If you invest that money anywhere else you're paying your marginal tax rate on it. True once you drop it into super (15% tax )it's stuck there till preservation age.
It's all about minimising tax. But if you think you'll need the coin down the road don't do it.
@@nathansmith5726 That makes sense for low income earners which gets extra government top up but why would anyone place $120k non concessional amount into super when you would have paid 30% or more tax already.I can understand if high returns was guaranteed.
Im a new Aussie(ex Indian). What I realised is, in Australia people who pay taxes are punished harder than those who evade. Get rid of cash, move digital and avoid tax leaks. Tax money is going down drains through inefficient free payments.
Is the SG employer contributions part of concessional contributions or separate? For example, I have made my own personal concessional contribution in a financial year of $27,500 as well as my maximum contribution cap limit of non-concessional contributions. Then I get employed in that same financial year and my employer needs to contribute to my Super fund. I want to make sure that i don't exceed the contributions cap limit. It seems from your video the SG contribution is separate but i got confused when you mention salary sacrificing by your employer into concessional contribution.
SG contributions are concessional contributions and are counted towards the concessional contributions cap.
@@PhilInAustralia thanks, so if you've already maxed out your concessional contributions for a financial year, your employer cannot contribute more then. I have self contributed to my concessional contribution, so I would need to tell any new employer that they cannot contribute into my Super until the next financial year.
If you have not maxed out your concessional contributions in the last 5 financial years, you can still have the contributions this year from your employer.
I don't think your employer can actually non contribute super to you.
You just have to pay a bit more tax should you go over the concessional limit, but it's otherwise tax that you would have had to pay on your income anyway.
Your employer will have to contribute to your super and they must do so by very strict deadlines. If you exceed the cap and are unable to use unused cap amounts from previous years (or do not have any), then you will get an excess contribution notice in the mail and you can opt to withdraw the excess.
Can you ask your employer to salary sacrifice for you or do you have to contact the A.T.O.
As I understand it, a corporate employer will be able to make salary sacrifice contributions in a fairly straight forward manner for you. A small employer probably can’t. In the latter case you’ll need to make post tax contributions to super, but put in a form with your super company that you will be claiming a tax deduction - this amount will be equivalent to having made salary sacrifice contributions and be subject to the max salary sacrifice cap.
Most employers should be able to do that for you, though I would suggest you ensure your employer has an impeccable record in remitting
contributions on time before doing so.
I run a small business. All my employee has to ask is what they want salary sacrificed and i pay the difference into their super instead of their bank account. Make sure you log regularly into your super to make sure your boss has not mucked anything up.
Every increase in super sends more jobs offshore and sees employers invest more in AI. Cause and effect 101
Is there an age limit on being able to contribute Non Consetional contribution?
Yes, non-concessional contributions can only be made up until 28 days after the end of the month in which you turn 75. Also, you need to be sure that your total super balance is below the relevant limits. superguy.com.au/superannuation-changes-2024-25/
Good sounds perfect
Thanks for watching
Fantastic summary thanks. What's the chance of doing a video on Labor's proposed rule changes I've heard some media consternation about?
How many have 300K lying around?
30K?
People do get inheritances and if they are close to retirement age, this is one of the options they have.
Many do. Especially if selling an investment property, downsizing a home or receiving an inheritance.
Many do. Especially if selling an investment property, downsizing a home or receiving an inheritance.
@@SuperGuyAu nice for them.
Probably not in my family’s future lol
Not all of us get a clean run sans illness or accident or unexpected calamity courtesy of others.
Thanks for the info.
You're welcome!