Talk Investing Podcast
The Talk Investing Podcast & Blog discusses investment advice from our previous podcasts and radio shows by Remo Greco & Marco Mellado. Learn all things around retirement and investing.
Talk Investing Podcast
EOFY Super Top-Ups Made Simple
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Think you’ve got until 30 June to sort your super? That assumption catches people every year. We sit down with superannuation specialist Marco Mulato to map out the end of financial year moves that matter, the deadlines your super fund might enforce, and the simple admin steps that can decide whether you actually get the tax deduction you were counting on.
We walk through concessional contributions and the $30,000 cap, including how employer contributions and salary sacrifice count towards it, and how to check your real “gap” in MyGov. Marco explains the Notice of Intent to Claim process in plain language, why you must get the fund’s acknowledgement back, and what can go wrong if you roll over, withdraw, or start a pension before the notice is lodged. We also cover catch-up concessional contributions for people under the $500,000 total super balance threshold, and why a bonus, a capital gain, or a high-income year can make carry-forward caps a genuine tax-planning tool.
Listener questions take us into the practical edge cases: what happens if you accidentally exceed the cap, when the government co-contribution is worth it, the income thresholds that apply, and whether you can combine different contribution types. We also talk timing around retirement and redundancy, because shifting a payout into the new financial year can change the tax on annual leave, long service leave, and termination payments by a startling amount. We finish with super basics many people still struggle to find, like pension phase limits, work test rules after 67, inheritance tax triggers, and when it’s time to pay for personal financial advice.
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg
Why June Gets So Busy
SPEAKER_00The Talk Investing Podcast and blog discusses investment advice from our previous podcasts and radio shows by Remo Greco and Marco Melado. Learn all things around retirement and investing.
SPEAKER_09On the ABC Listen app, your smart speaker, and on your radio.
SPEAKER_08This is ABC Radio Melbourne and Victoria with Lisa Leon.
SPEAKER_09On the money. Lisa, nice to be back. How are you?
SPEAKER_07Good. But you must get to this time of the year, and it's just really intense.
SPEAKER_09It's a pretty busy period, I think, for us. And it's something you sometimes can't start too early, so we can't really start in April and May sometimes and get all the planning done. We've really kind of got to wait to this June moment to have a look at all of the client circumstances and then try to work out what we need to do in the last two or three weeks of June.
SPEAKER_07So this is precious time that we have with you this morning.
SPEAKER_09Oh, but I'm happy to be here, Lisa.
SPEAKER_07Tricky questions is what Marco loves, so go for it.
Concessional Top-Ups And Deadlines
SPEAKER_07Now let's talk about super contributions, because that is time-specific. Yeah. Okay.
SPEAKER_09So this is this is probably the one of the key considerations for you. And we're talking about should we make a contribution to super? Question A. And then B, if we're going to, how do we do that? And so should we really depend on the type of contribution. So if we are in an in a if we have the ability to make a contribution because we have cash. And we can claim a tax deduction for that. The limit's $30,000. We must remember, though, that during the year there may have been contributions made. So you've got to look those up. You need to know where you're at. So you can either check with your superfund or go on to myGov. Then you have an ability to contribute the gap, so the top-up. So let's say, for example, there's been $15,000 or $20,000 contributed for you. That might be from your employer, that might be from you making some salary sacrifice. The difference between that and $30,000 is what you can contribute. You need to get it into your superfund. You need to very clearly understand when your superfund wants it in buy.
SPEAKER_07Yeah, and that's what I was saying was that little trap is that you may think you've got until 30 June, but actually some of them are actually specifying you need to do this on 23rd of June is what I saw in my superfund.
SPEAKER_09They've got to sort through them, collate them, some are EFT, some are B pay, some might be old-fashioned check. So they really want it in as early as possible to give you the best chance of getting it in by the due date. So check with your superphone when that date is. Make sure you get it in. It's really important. It won't count if it's not in by the due date.
SPEAKER_07And let's say you've got it in though, so I just want to be very specific here. You also have to s um fill out a document about your personal contribution. But that does not need to be in at the same time.
SPEAKER_09So the important part is getting the physical contribution in.
Notice Of Intent And Record Keeping
SPEAKER_09Then, if you want to claim a tax deduction for it, which a lot of people will want to do, we then need to sign what's called a notice of intent to claim. That doesn't have to be done straight away. It can be done much later in the new financial year. It has to be done either before you lodge your return or before something happens in your particular fund, like a withdrawal or commencing a pension or a rollover. So you have a bit of time for that, but don't forget, it's really important. Diorise it, put it in your calendar. You cannot forget, because if you forget to do that notice of intent and don't get confirmation from the superfund, it doesn't count as a deductible contribution. It's just normal cash going in from you, and it kind of defeats the purpose. So be very good with your record keeping and your reminders.
SPEAKER_07And it's not just the submission to you've got to get that notice back from them, you know, which is the double whammy, I think.
SPEAKER_09Trevor Burrus, Jr.: There's a few steps in making a contribution that you don't want to miss out on, otherwise the deduction goes astray, and that's the you know, that's the whole point of making it. The premise was you want to boost your super, fantastic, but you also want to reduce your taxable income, and that's where you get the tax benefit. Trevor Burrus, Jr.
SPEAKER_07Any more tricks, traps with those top-ups?
Catch-Up Caps For Bigger Deductions
SPEAKER_09Uh well, I think it's important to look at uh what we call catch-up concessional contributions. So this is becoming really popular. So if your balance is five under $500,000 as at last June, so we're talking almost a year ago, you have this wonderful ability to use previous years' caps that you haven't used. Now, why would we do that? Well, you may have earned more income this year, you may have had a bonus, you may have sold an asset that had a big capital gain on it, so you've got all this extra income that's gonna be taxed. If you have an ability to put in a very large super contribution and claim a deduction for that, your tax is just gonna be squashed. And so you need to start thinking about that now, given we've only got a few weeks left. And the way you check that is on your MyGov. You can go in there into the super tab and it'll give you a list of previous years contributions and what gap you have in each of those years.
SPEAKER_07All
Retirement Or Redundancy Timing
SPEAKER_07right. Um and then I did want to cover then this uh advice or this idea that uh when you retire or if you've been made redundant, the timing does matter at this point.
SPEAKER_09Aaron Powell Yeah, that's right. So if we're if we're looking at retiring or we have you know a little bit of optionality, I guess, a little bit of say of uh when we might be made redundant if that's happening, then we really need to think about whether we can push that out into the new financial year. And why do we want to do that? Well, we've worked all year, so we've earned a whole bunch of income. We're then going to retire and be made redundant. We're generally going to be owed annual leave, long service leave. There might be an eligible termination payment, which you get paid when you're made redundant. If that all gets taxed in the current year, well that just gets added to all of your income. That could put you in a very high tax rate, or maybe even the highest personal tax rate, which is 47%. If we can delay that and have that taxed in the new financial year, where you're earning perhaps much lower income or indeed no income, then those lump sum payments get taxed at very, very low rates. So there are tens of thousands of dollars difference that that could make. So it's pretty important to get your timing right.
SPEAKER_07We're doing on the money. Lisa Leong is with you on 774 ABC Radio Melbourne and Victoria. I'm with Marco Mulato, a superannuation specialist. We started really talking about the things that you want to be doing or thinking about before the end of financial year. We started with your super top-up, so those little contributions or bigger contributions that you can make to your super before the end of financial year. And we're saying that timing is key here. You've asked us some questions, so I'm going to just take us back to the super contributions here.
What If You Go Over The Cap
SPEAKER_07Karen from Ringwood says, what happens if you put in a contribution that takes you over that $30,000 limit in your super fund? Great question.
SPEAKER_09Very good question. So there's a couple of things to think about here. It used to be a very, very big problem because the penalties were pretty dracranian and and and you know it it did cost you a lot of money. I think they had a lot of people inadvertently do this, breach the caps over the years, and really the tax officer's position has now softened. So it's not necessarily the end of the world, but a couple of things can happen. You can either choose to just not claim the part that's the excess. So we might have put in thirty-five accidentally, uh when it's time to make a notice of intent. Well, you really only put down up to the thirty. And then that's so you just write down thirty.
SPEAKER_07Yeah, you write down thirty. That's it.
SPEAKER_09Right. And then the other five is counted as a non-concessional contribution, no harm. If we haven't done that and we've accidentally breached because we've got salary sacrifice going in. Just forgot, the employer put in a bit more than you thought, then you put in a bit more and you've claimed your intent and we're a little bit over. It's not a big deal. The tax you wait until the tax office writes to you, they'll tell you that you're over, they'll tell you by how much you're over, they'll give you an opportunity to release that from your superfund. You then release that. They calculate a notional amount of earnings that that money has earned, and then they just take that amount and they add it to your accessible income when you do your tax return. So it's not a big deal. Is there some penalty tax or interest? It's generally very, very modest, so I wouldn't worry too much about that.
SPEAKER_07Oh, a good
Government Co-Contribution Rules
SPEAKER_07question here. Is it worth putting in $500?
SPEAKER_09Oh, this might relate to the co-contribution, I think.
SPEAKER_07That's what it sounds like.
SPEAKER_09This this is essentially the government giving you f a free supercontribution. So if you earn under a certain amount and it's forty-five thousand dollars this year, you could put in five hundred dollars and the government will put in a thousand bucks. So that's pretty handy, right? That's a that's a pretty big return. And so if you're in an ability to do that and you're earning under that income, it's free money, so I would do it. And that's earning, it doesn't matter if you're casual or it doesn't matter if you're casual or part-time or self-employed or anything, they're just your earnings.
SPEAKER_07Trevor Burrus, Jr.: Who is entitled to a tax deduction for making a contribution past this texture?
SPEAKER_09All right. So anybody under the age of 67 who has uh any income at all can make a contribution and claim a tax deduction. Now you only want to do that so far as in it gets your taxable income level down, but not to below 15 percent. Why do we say that? Because the contribution that you're putting in the super that you're claiming the deduction for gets taxed in the fund. Now that tax in the fund is only 15 percent. But you don't want it to be higher than We don't want the tax in the super fund to be higher than that, but it's fifteen percent flat. So really what you want is your earnings to be high enough to put you in a taxable position that's above that. So you might be at 30 percent tax rate or a 45 percent tax rate. It makes a lot of sense. But if you're not earning a lot of income and you're either paying no tax or maybe only 18 percent tax, which is the rate now including Medicare up to forty-five grand, you might think, well, hang on, it's not a massive benefit. I'm putting this money in, it's preserved until I hit certain conditions of release. Is it really worthwhile? So you've got to think about that. But generally for most people earning an income, they're well above the 15 percent tax rate, it makes a lot of sense.
SPEAKER_07Tom from Sheppard and has this question for you, Marco. Tom writes, I have already salary sacrificed $30,000 under the cap. Am I able to contribute any after tax monies and still get a tax deduction?
SPEAKER_09We wish. We can't. $30,000 is the hard limit. So if we've maximized that for the year, you could go back and look at your catch-ups. So this is what we were talking about just before, whether you've got any previous years where you haven't maximized the cap. And in addition to that, your balance super balance was under $500,000 as at 30 June last year, then you could put more in. You could use those c those old caps. If we haven't got that or our balance is too high, 30 is the limit. If you put in more money, it'll just be a plain old non-concessional. Still boost your super?
SPEAKER_07What does non-concessional mean? It means you've already paid your tax.
SPEAKER_09Correct, means nothing to do.
SPEAKER_07But you added anyway.
SPEAKER_09You can add it. You're just not getting a tax deduction for it. But you're boosting your super balance, right? So it still works.
SPEAKER_07Got it. Can you claim a government co-contribution and a concessional tax deduction, e.g., five hundred dollars government and, for example, a different five thousand dollar concessional contribution tax deduction to contributions?
SPEAKER_09Yes, from Leah. Yes.
SPEAKER_07So the Trevor Burrus, What does this mean? Sorry.
SPEAKER_09So the $500 that we're putting in will be non-tax deductible. So that's $500 that's coming in from your bank account. The benefit you're receiving is the government co-contribution for that. That's $1,000. Yep, they're not going to give you a tax deduction for that. But then you have the ability to contribute or make another contribution which you could claim a tax deduction for. So they're separate contributions, but one is not limiting you.
SPEAKER_07So it's really that you've earned less than the $40,000.
SPEAKER_09Yes, less if you're earned less than the forty-five, you should do the five thousand dollars. Trevor Burrus, Jr. And then you you could also consider whether you want to do a deductible, but you you you'd kind of need to work out whether that's worthwhile, right? So the the the tax rate for someone earning money an hour as an employee or a self-employed person at at low levels, they they're pretty low. So is that really a huge benefit over and above the 15 percent you pay in the super fund? You've really got to look at that.
SPEAKER_07And Andrew has called through. What's your question for Marco?
SPEAKER_06Well, I'm a self-funded retiree. I don't put any money into super, but I have money in super. And what I can't find out is if I'm a single person age 66, don't put any money into super. Is there a ceiling cap of how much money I can have in super before paying additional taxes or anything?
SPEAKER_09Okay, so good question. So there isn't necessarily a ceiling on the amount you can have in super, so you can have as much as you like in super. The ceiling really comes about by either what you can transition into pension phase, so that's one point nine million this year, it will be two million next year, or your ability to actually make the contribution. And so if you've got one point nine million dollars as at 30 June last year, then this year you won't be able to make that non-concessional contribution.
SPEAKER_06Cool, that's great. It's so hard to find that information.
SPEAKER_09They make it a bit tricky because there's different types of contributions and limits and all sorts of stuff, so you kind of really got to know your stuff, but generally they're the uh they're the main concepts. Now you can still make a tax-deductible contribution if you like. So you could do that up to six age sixty-seven if, for example, you've got income coming in from other investments. Okay. You could put something into superclaim a deduction for that and lower your taxable income.
SPEAKER_06Okay.
Salary Sacrifice Versus Personal Top-Ups
SPEAKER_06All right. Thank you for your help. Greatly appreciate it.
SPEAKER_09Pleasure.
SPEAKER_07Oh, good on you, Andrew. Thank you for your call. Let's continue going with the questions because Manny has asked, can I apply for a tax deduction on my salary sacrifice?
SPEAKER_09Ah, good one. So you don't really need to. So salary sacrifice in itself is the tax deduction. So what your employer will do if you elect a salary sacrifice, so you'll tell your employer, please salary sacrifice X amount per uh fortnight or month or however you get paid, or a percentage. They will then, as part of the payroll, simply make that happen and they will pay you less wages and salary as a result of that. So you're basically diverting your wages and sell some of your wages and salary into super. So that will happen in the background for you automatically, and then you will see that because you earn less, you may pay a little bit less PAYG tax, or in your tax return, you'll have a larger refund because you'll have paid, you'll have earned less in your name and diverted more into your superfund. So it kind of happens automatically for you.
SPEAKER_07Is there an either rule then? You either s salary sacrifice or you do a personal contribution.
SPEAKER_09Correct. Or you can do both. You could salary sacrifice for most of the year and then think, oh, hang on a second, I've got a bit more cash, I've got a gap, I can top up. Instead of going to my employer and trying to get them to do it, maybe I'll just put it in, make note of it, and then do a notice of intent when I've got a bit more time and get me up to that 30. Trevor Burrus, Jr.
SPEAKER_07Is there a benefit in doing either?
SPEAKER_09So salary sacrifice is a really nice way to commit to it and it happens regularly, and you've got money regularly going into the fund being invested. That's big tick, I think. It's disciplined. The other reason to not do that and perhaps look at doing something closer to the end of the year is just is just as if you're uncertain of your cash flow and you're not sure what expenses you're gonna have for the year. You might want to wait until May or June and be really secure in yourself that you can make that contribution and you're not gonna be left short of cash.
SPEAKER_07And Judy is here seeking some clarification. Good morning, Judy. How are you today? Very well, thank you. Uh what's your question for Marco?
SPEAKER_04Marco said earlier in respect of the co-contribution that if you put in five hundred, the government would um allocate you one thousand. My understanding in the past was that you had to put in a thousand and the government would give you five hundred, assuming you're within the income level. So the government co-contribution.
SPEAKER_09Uh yes, it's a five hundred contribution and then the government matches that. I might have said a thousand before, I think. No, I I thought I thought you had to put a thousand in. It used to be a thousand. Yeah, no, it used to be a thousand. Now it's five hundred. Okay. And they'll match the five hundred. They'll match the five hundred very easily. So in the old days it used to be actually fifteen hundred, which was a lot higher. And they've started to bring that down gradually over time. But now five hundred will get you the matched five hundred.
SPEAKER_07But only once.
SPEAKER_09And well, once a year.
SPEAKER_07Once a year.
SPEAKER_09Once a year, yeah. So not on not on an ongoing basis.
SPEAKER_07So you can't even you can't contribute 1,500 and say, can you match me three times?
SPEAKER_09No, it's per it's per annum. And uh it's the biggest thing is you just got to make sure you're under the income level. So sometimes that can be hard to work out. That's why people leave it till sort of June where they can look back at the twelve months and have a look and determine what their income actually is.
SPEAKER_07Thank you, Judy, for that clarification though. Because I didn't know that it had changed over time. Thank you, Judy. And Yuri is here also asking about the contribution. Hello, Yuri. Yes. Hello. Hello. You've got a question for Marco.
SPEAKER_01Yes. Um I I wonder, is it any um uh limits like uh income? How much you can your income, you can put that um 500 contribution uh to get one thousand.
SPEAKER_09So the lim so if it's under forty-five thousand your income, you'll get the full government co-contribution and then it slowly declines based on your earnings. Once you hit sixty thousand dollars, if you're over that, then you don't get any co-contribution. So there's really no point in doing that. But it's uh it's kind of scaled. So the more you earn between forty-five thousand and sixty, the less the government co-contribution will be, which then allows you to actually do another calculation which goes, well, if I'm not going to get the full co-contribution, should I put in the full five hundred? Maybe you only need to put in three or four hundred to get that matched by the government. So there's a bit of maths involved, really.
SPEAKER_07Beautiful. Yuri, good one. Thank you for your question. Um the text line now, do I have to tell the government about contributions or just wire it in, ask that text line?
SPEAKER_09Just go straight in and then the superfund uh essentially alerts uh the government or the ATO, and then it automatically gets credited to you in the next financial year. So you don't really need to do anything other than just put the money in.
SPEAKER_07Beautiful. And this one, Janet
Beneficiaries And Super For Grandchildren
SPEAKER_07writes. Hello, Lisa and Marco. Thanks for your segment. If a super fund is set up for a grandchild, who would be the nom who would be nominated as the beneficiary and would the insurance part be necessary?
SPEAKER_09Yeah, great question. So if we're a grandchild, so if we go back to who you can nominate as a beneficiary and a valid beneficiary, it's generally a spouse, your children, or your estate. The grandchild's going to have neither of those, so neither children nor spouse. So really what will happen is it defaults generally to the estate, or if you did do a binding nomination, you would just nominate a state or the estate, the grandchild's estate.
SPEAKER_07Okay. And then the second part was would the insurance part be necessary?
SPEAKER_09Uh I'm not sure that there would be any automatic insurance allocated to a grandchild, to be honest, at that age. So if there was, sure you'd look at it. But I'm not sure a super fund is going to give you default group insurance if you're a grandchild.
SPEAKER_07Okay. Joanne is here. Joanne, you want to turn the radio down and you are live with Marco in the house.
SPEAKER_05Hi, Joanne. Thanks for taking my call. Pleasure. I'm interested in making a voluntary contribution, which I've never done before. I've normally done the salary sacrificing method. Uh I'm wondering if I make a lump sum payment before the end of the tax year and then decide uh to do a level next year. Um just in regards to the notice of intent form, I believe there's another one that's a variation. So are you best to wait and just do it all in one go, or if you wanted to do it several times a year, um what are the Positives and negatives of uh different ways of doing that.
SPEAKER_09Yeah, so if you're going to do one this year, then you'll only have one notice of intent to do because the ones you do next year will count for next financial year. So if you did one in June, then I think you you'll be pretty certain that it's going to work for you and you want to claim that, and so you'll do your notice of intent next year. Then next financial year you've got the whole year to make those contributions. What we often suggest is you can make some early and that's great, but if you're really not sure whether you want to claim a particular amount or you're just you just don't know what amount you're going to end up claiming. It's probably not a bad idea to do the contribution or the final contribution in May or June next year because you'll be able to look back over the year and understand how much income you've earned, roughly what deductions might apply to you, so that gets you to your accessible level of income. Then you have a really clear picture of, right, what is it going to be or what the right amount going to be to claim as a tax deduction. And so therefore you won't get any into any trouble. You can vary them, uh, and you can often only vary them down, so we can't vary them up. It's a bit more uh disciplined, I think, to wait till a little bit further into the end of the financial year where you have clarity around your income.
SPEAKER_05And what about if you decide sort of like April you might put some in and then closer to the end of the financial year, you might think that, okay, I can put more in.
SPEAKER_09Is that um That's perfectly fine. So I'd be putting in the contributions. I wouldn't be doing a notice with them along with them, I'd just be putting them all in. Then when the end of financial year is wrapped up in the new financial year, you'll be able to look back and say, right, I now want to put in my notice. Yeah, and this is the amount I want to go for.
SPEAKER_05So potentially each year one notice intent form, um just adding up the totals of voluntary contributions. Correct.
SPEAKER_09Exactly right.
SPEAKER_05And and can you just also give any advice?
Where To Get Advice That Fits
SPEAKER_05Um I'm with a health fund that's had the lockdown period, um, which has been sort of quite hard to get in contact with them. Um and if you're wanting financial advice in regards to um minimizing your tax, um do you think it's enough to potentially go through your super fund uh if you know you're not getting enough information from your accountant, or you think you need the financial planner outside the superannuation fund?
SPEAKER_09Okay, so three places you you could essentially go there too. The super fund's generally gonna be pretty limited with what what they can advise you on for the very obvious reason that they don't know enough about your circumstances. So they're just gonna be limited in terms of what they know about you and therefore what they can advise. And also they're limited to talking about certain superannuation related concepts. The accountant is probably gonna be pretty good. They should be pretty au fay with your situation, but they're gonna be limited by the fact that they don't have a license to give advice. And then the financial advisor, to be honest, is almost unlimited. They can they can advise you in a whole bunch of areas, uh, but it is a new cost to you. So you have to go through the process of selecting an advisor and then understanding what that advice is going to cost you and whether it's worthwhile. Is it gonna be valuable? It will be valuable, but you need to determine whether that is uh the value that you need for the price you're going to pay.
SPEAKER_07Thank you, Joanna, for your call. I'm gonna go to the text line now. Hi, Lisa and Marco. I believe you need to be employed to receive the co-contribution. Is this true? Ask Nikki.
SPEAKER_09Yes, but you only need to you only need to have 10% of your earnings come from some kind of employment. That could be self-employment. So it is true you can't be not working and just have a whole bunch of, say, investment income coming in and then do that. So there has to be some form of employment, but it's pretty easy to meet.
SPEAKER_07And uh Reese Super co-contribution I have not submitted previously. Can I contribute retrospectively? Trevor Burrus, Jr.
SPEAKER_09We wish, but no. No, it's only in the current or future year. Trevor Burrus, Jr.
SPEAKER_07Can you salary sacrifice into your partner's super?
SPEAKER_09So you wouldn't call that salary sacrifice. Um, you can't. I guess technically you can't salary sacrifice your wages into your partner's super, but your partner could use some of your cash that you've jointly built up, make that contribution, and claim a deduction themselves for that contribution.
SPEAKER_07I'm 70 and still working, says Kathy from Carlton. I've got about $900,000 in super, but I rent. Can I take out super, buy a house and keep working?
SPEAKER_09Uh yes, you can do all of that. So you're 70, which means you've got uh unfettered and complete access to your super. You could you could theoretically withdraw as much as you like, buy a house, which will give you security, sure. And then continue to work and rebuild some of that super. Uh I think you probably need some good financial modelling around what the right course is for you, though, because that may not be the right option.
SPEAKER_07Okay. Thank you, Kathy. I hope you get some guidance there. Um Dax super is such a minefield.
SPEAKER_09Um Dick, agreed.
SPEAKER_07Should I get advice from a financial advisor for
Inheritance Tax Traps And Next Steps
SPEAKER_07inheritance? And in fact, let's hold that because I know that Jay has been waiting patiently here with a question about inheritance. Hi, Jay from North Bourne. How are you?
SPEAKER_02I'm good, thank you. Thanks for taking my call.
SPEAKER_07Oh, pleasure. Do you want to get a little bit closer to the phone?
SPEAKER_02I'm trying, trying desperately. I'm actually driving very safely, hand free, I promise.
SPEAKER_07Okay. Um, well, let's ask your question for Marco then.
SPEAKER_02So, Marco, I'm on low income, definitely, low income threshold. However, I'm going to receive an inheritance before the end of the financial year. I would like to be able to put some of that into my super, but I'm also wondering, am I going to be taxed at a high threshold when this significant amount comes into my account?
SPEAKER_09Okay, so uh Does that make sense? Yes, it does. So when you receive an inheritance, that inheritance itself, those proceeds or whether it's shares, they're not taxed at that point. So when you receive that inheritance, you won't incur any tax financial year, right? So it's uh it's a bit of a windfall, I guess, in in many terms, inverted commas.
SPEAKER_07That won't affect Jay's income as in yeah.
SPEAKER_09It's not added to income, it's not considered a gain, it is inheritance. When you then do something with that inheritance, well that's part two, then there may be something incurred depending on what you do.
SPEAKER_07So if she invested in the share market and made money and took a dividend, it could be Correct. Yeah.
SPEAKER_09Uh if the inheritance isn't cash and it's perhaps some shares, and then you sell some of those shares, that's a taxing point. That's a trigger. But not until you sell are you incurring anything.
SPEAKER_07All right, Jay, is that good?
SPEAKER_02Fantastic. Thank you so much.
SPEAKER_07Pleasure. All right. Safe driving now, Jay. And so Dax also saying, should I have financial advice from a financial advisor for inheritance? I have no idea, Dax. Yes.
SPEAKER_09Yes, absolutely.
SPEAKER_07Because I think there's a lot of tricks here.
SPEAKER_09What do we do with an inheritance? Do we pay down debt? Do we invest? What do we invest in? Do we invest in the Trevor Burrus?
SPEAKER_07I think it's like the perfect it's one of those moments where there are moments in time when you should get financial advice.
SPEAKER_09Trevor Burrus, Jr.: Big trigger event. Right. An inheritance. Lots of different optionality with inheritances.
SPEAKER_07Dave says, Oh, maybe you could mention that you must have PAYG income for the year to qualify for government co-contribution. Yes.
SPEAKER_09Yes, yep, we talked about that before. Yep, definitely.
Work Test After 67 Plus Wrap
SPEAKER_07If I'm working and 68 years old, do I get tax relief on a personal contribution? That's from Michael.
SPEAKER_09So the important thing here is age. So we're 68. So if we're between 67 and 75, and we make a contribution to Super and we want to claim a tax deduction for it, we have to have met a work test. So we either need to be working, just generally working, what most people would consider working, or if we're not, we have to find a way to meet the work test, which is working 40 hours in a period of 30 consecutive days. If we can meet that, we can make a contribution and we can get some tax relief.
SPEAKER_07Beautiful. And Neil is here. Hello, Neil.
SPEAKER_03Hello, how are you going?
SPEAKER_07Good. What's your question for Marco?
SPEAKER_03Um, I'm having trouble uh how you going, Marco. I'm having trouble um downloading the form uh for my uh super.
SPEAKER_09And what form is that? What do you want to do with your super?
SPEAKER_03Uh claim uh claim a super. I'm going to retire.
SPEAKER_09Oh you want to we Oh you want to cla okay.
SPEAKER_03So I'd be calling I don't know how to c how to get the form down until I can um start getting it ready.
SPEAKER_09Yeah, okay. I'd be calling the super fund first and making sure you get the right form and they can probably help you through completing it as well and talking you through some options. Do you withdraw it as a lump sum or do you start what's called a pension income stream? So maybe a few decisions there. I'd I'd want to be talking to them so that you understood your options.
SPEAKER_07Beautiful. Thank you, Neil. Um then finally I just want to to ask this one. This texture says, I'm lazy. I earn approximately 100k, I contribute 200 a fortnight to super. What would you estimate my top-up amount maximum to be? Is there a calculator available?
SPEAKER_09Yes, there's a calculator on just about every super website. And that's not so lazy because he's rung in and he's asking the question.
SPEAKER_07Yeah, there you go.
SPEAKER_09So calculators everywhere, all over the web. So really easy to work out.
SPEAKER_07All right. That sounds like a good suggestion. Well, thank you so much, everybody, for your text messages. Thank you, Marco, for taking the time at this busy period uh for helping us navigate everything.
