13 March 2025
Clearing the fog around your family's future
When it comes to planning for the future, many people are unsure about how to best protect their loved ones and preserve their wealth for future generations. Read more
There’s always a lot of hype and excitement leading up to the end of a financial year. Accountants are chasing their clients to make timely decisions. Companies are wrapping up their results. And giant red EOFY sale signs are hanging in the windows of all the major stores.
But now that the dust has settled and the new FY has begun, things are a lot calmer. Which means you’ve got time to think carefully about some of the financial moves you might want to make in the months ahead.
The arrival of the 2024/25 tax year brings with it a number of opportunities. In this article our Elston advisers have focused on four options that you, a friend or someone in your family might want to consider.
1. A super idea for first home buyers
For anyone who is trying to save for their first home, the First Home Super Saver Scheme (FHSSS) might be something to think about. It allows eligible first home buyers to withdraw voluntary contributions made to their superannuation fund to purchase a first home.
How much of their super can be withdrawn? Not all. Just the voluntary contributions that have been made since 1 July 2017. That’s still potentially a substantial sum of money. The scheme gives you access to up to six years of voluntary contributions.
For a young couple that hasn’t done much in the way of voluntary contributions, this could be the time to start. The FHSSS is designed to encourage savers by allowing them to deposit into a concessionally taxed super environment, and then withdraw some of that money later. So, it could be a real boost. If you want to know more about the scheme, don’t hesitate to reach out to your Elston adviser.
2. Using downsizing to upsize your super
Is this the year when you finally make the decision to downsize? It’s certainly tempting when you think about the money that could go into your super.
Eligible super members who are aged 55 or over can make super contributions of up to $300,000 per person from the sale of their home. That means a couple could add as much as $600,000! That can be a huge boost to your super as you approach retirement.
Importantly, these contributions don’t count towards the contribution caps and can be made even if you don’t meet the usual age, work and other contribution tests.
It’s important to get your ducks lined up so you can maximise this one-off opportunity. So talk to your adviser well ahead of your move and have a good chat about the best way to approach downsizing.
3. Contribute to the max
For the 2024/25 financial year super members are allowed to make concessional (pre-tax) super contributions totaling up to the cap max of $30,000. Are you contributing to the max each FY or are you falling short? If you’re not quite getting there by June 30 it might be you’re struggling trying to find extra cash in May and June. But if you work out how much you can make as extra contributions now and keep that up over 12 months, you should have a better chance of hitting your target.
If you have an employer, you could also ask them to put extra into super out of your pre-tax pay. It’s a great way to save more and pay less tax.
Super members often find that if they talk to an Elston adviser, more opportunities to contribute are identified. For example, if you haven’t maxed out your concessional contributions, you may be eligible to make ‘catch-up’ concessional contributions.
4. Talk to Elston
At Elston we have helped so many people to gain tax advantages as they work towards their financial goals. Talk to one of our advisers now, before the new tax year gets away from you. The first meeting is at our cost and there’s no obligation to proceed. So, what have you got to lose? Give us a call. We’re here to help.
If you would like more information please call 1300 ELSTON or contact us.
