Key financial updates to help you make the most of the year ahead.
A new financial year brings fresh opportunities to strengthen your financial position. From higher super contribution limits to tax changes, several updates have taken effect that could help you build more wealth and improve your long-term financial outcomes.
1. You Can Contribute More to Super
Here are six key changes worth knowing about.
The annual limits on super contributions have increased, allowing many Australians to invest more into one of the most tax-effective environments available.
Whether you’re looking to boost your retirement savings, reduce tax, or make larger contributions before retirement, these higher limits may create valuable planning opportunities.
2. Higher Super Balance Limits
The Transfer Balance Cap and Total Superannuation Balance thresholds have both increased to $2.1 million.
For some retirees, this means more super can be transferred into the tax-free retirement phase, while others may now become eligible for contribution strategies that weren’t previously available.
3. Super Paid on Payday
A welcome change for employees is the move to Payday Super, with employer super contributions generally being paid each pay cycle rather than quarterly.
This means your money starts working for you sooner, benefiting from investment returns earlier, while also making it easier to identify if employer contributions haven’t been paid correctly.
4. Personal Tax Cuts
Many Australians on lower incomes will receive a modest tax cut this financial year, increasing their take-home pay.
While the savings may seem small, directing the extra money towards investments, savings or additional super contributions can make a meaningful difference over time.
5. More Changes on the Horizon
The financial landscape continues to evolve, with proposed reforms still under discussion, including potential changes to:
- Capital Gains Tax
- Negative Gearing
- Division 296 tax on super balances above $3 million
- Trust taxation
As legislation continues to develop, it’s more important than ever to ensure your financial strategy remains up to date.
6. Is It Time for a Financial Review?
The start of a new financial year is the perfect time to review your financial plan.
A review may help you:
- maximise your super contributions
- improve tax efficiency
- review your investment portfolio
- ensure your insurance still meets your needs
- confirm you’re on track to achieve your retirement goals
If you’d like to understand how these changes may affect your personal circumstances, we’d love to help. Please contact our office to arrange a review and ensure you’re making the most of the opportunities available this financial year.