Time for a superannuation check-up?
The new financial year has begun, and with it have come some important changes to superannuation from 1 July 2024. With these changes coming into effect, it’s a good time to give your super a check-up.
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On 1 July 2024, the superannuation guarantee rate increased from 11% to 11.5% on workers’ ordinary time earnings, for payments of salary and wages. In addition, the concessional super contributions cap also increased from $27,500 to $30,000 and the non-concessional contributions cap increased from $110,000 to $120,000.
The Australian Taxation Office (ATO) suggests the following steps as a good place to start in giving your super a check-up:
- Check your contact details: Make sure your contact details and tax file number (TFN) are up to date with the ATO and your super fund.
- Check your super balance and employer contributions: Checking your super balance and keeping track of your employer contributions can be done at any time through ATO online services or your super fund.
- Check for lost and unclaimed super: If you’ve changed your name, address or your job, you may have lost track of some of your super. Lost super is where your super fund hasn’t been able to contact you, or your account is inactive and then have transferred lost super to the ATO. You can check this online.
- Check if you have multiple super accounts and consider consolidating: If you’ve ever moved jobs, you might have more than one super account. Each account will charge fees and may include insurance, so combining your super accounts may reduce fees, help you pay only for the insurance you need and make your super easier to manage.
- Check your nominated beneficiary: Make sure you have a valid death beneficiary nomination with your super fund, as this isn’t covered by your will. Check with your fund if there is an expiry on the nomination – some funds have options where the nominations don’t expire, while most nominations expire every three years. If you don’t have a beneficiary nominated, your fund will follow the law in determining where your super should go.
In addition, you should be evaluating how your super is being invested and how it matches your stage in life, how much risk you are willing to bear on these investments, if you super fund has insurance cover, does this still meets your needs, and do you have enough super for your retirement goals? This may determine a need to top-up on super contributions before retirement.
Given the many factors to consider, such as your health and life expectancy, inflation and investment returns, wages growth and taxation, and fees and regular contributions, it is best to seek professional advice regarding your superannuation circumstances and options moving forward.
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