When we wrote about the basics of gifting in late December, we thought Amanda Hardy Lai’s article, Gifting gone wrong, had covered most of the detail. But the thing the team at Retirement Essentials loves most about our members is the intelligent and interesting questions you ask; questions which help all of us – including other members – to better understand the rules. Read on to see what you asked and the finer details of Centrelink’s gifting rules.
Your superannuation strategy doesn’t end when you begin drawing your savings in an Account-Based Pension. It’s common for retirees to keep accumulating super through part-time work or lump sum contributions from windfalls like property sales or inheritance. And while most super contributions can be made until age 75, not everyone knows that once you start an Account-Based Pension (ABP), you can’t contribute to it anymore. But what if you could still roll your ABP back into super, combine it with new contributions, and create an even more flexible strategy?
Here’s how to make the most of your super by combining your existing ABP balance with new super contributions.
Smart strategies for super growth
Retirement may feel close, but growing your super after 60 can still provide significant financial benefits. Whether you’re working, selling assets, or receiving an inheritance, there are many different strategies to make the most of your superannuation.
Here’s what you need to know:
Contribution limits and Total Super Balance (TSB)
Super contributions are subject to annual caps. Exceeding these caps can result in additional taxes, so it’s important to stay within the limits:
Concessional contributions (before-tax): $30,000 annual limit for financial year 2024-25.
Non-Concessional contributions (after-tax): $120,000 annual limit for financial year 2024-25, or up to $360,000 using the Bring-Forward rule.
Your Total Super Balance (TSB), measured on 30 June of the previous financial year, determines your eligibility for:
Non-concessional contributions and the Bring-Forward rule
Carry-forward provisions for unused concessional caps over five years
Government co-contributions and spouse contributions
You can check your TSB on the ATO’s myGov website, but it’s important to ensure the figures are up to date with your most recent contributions.
You can also check how much extra you can contribute using the Carry-Forward provision on myGov by checking under ‘superannuation’ – you will see the amount of ‘unused pre-tax contributions’ you have available to use.