WA Super News

End of financial year

22/05/2020

Many of us have seen our super balance go backwards recently due to world share markets falling dramatically. However, history has taught us that shares can outperform most other investments over the longer term, meaning your super balance should recover and grow, if you stay invested.

Times have been tough recently, and the thought of adding more to your super may be the last thing on your mind, or even last on your list of financial priorities. However, with the end of the financial year fast approaching, you may be looking to take advantage of the Government’s generous tax concessions relevant to superannuation.

Here are six smart reasons why contributing to your super may still be a good idea:

What can you do?

The benefits

This may be right if….

How to take advantage

1. Make more money from your super
  • Investment earnings in super are taxed at a low 15% compared to your marginal tax rate (which can be up to 47%)

Your marginal tax rate is above 15%

Keep your money invested in super.
Find out more here.

2. Add pre-tax contributions to your super

 

  • Pay less tax on your personal income
  • Increase your retirement savings

You are an employee and your employer allows you to salary sacrifice

Arrange for your employer to contribute some of your pre-tax salary into super.
Find out more here

3. Make a personal super contribution and claim a tax deduction1
  • Pay less tax on your personal income
  • Increase your retirement savings

 

You are employed, self-employed or earn taxable income from other sources (such as investments)

Make a super contribution using BPAY® and notify us that you will be claiming a tax deduction.
Find out more here

4. Boost your spouse’s super and reduce your tax
  • Receive a tax offset of up to $540 pa
  • Increase your spouse’s retirement savings

You have a spouse who earns less than $40,000 pa2

Make an after-tax contribution via cheque into your spouse’s super account
Find out more here

5. Get a super top-up from the Government
  • Receive a Government co-contribution up to $500 pa
  • Increase your retirement savings

You earn less than $53,564 pa2 from your job or business

Make an after-tax super contribution via BPAY®.
Find out more here

6. Tax free money in retirement via an allocated pension
  • No tax on investment earnings
  • Payments from age 60 are tax-free

You are retired and aged over 60.

Transfer your super into an allocated pension. WA Super’s allocated pension product is called Retirement Solutions.
Find out more here

Notes:

1 There are legislated caps on how much can be contributed to super each year. Concessional (pre-tax) contributions are currently limited to $25,000 pa. It’s important to take the caps into account, as penalties may apply if you exceed them. Age and other eligibility conditions may apply.

2 Applicable for the 2019/20 financial year. Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.

 

A couple of important reminders:

  • Meeting certain conditions:  Before you add to your super, keep in mind you won’t be able to access the money until you meet certain conditions. Saving more in super can come with tax and other benefits this financial year – but that’s just the start. Please click on the links in the table above to find out more.
  • Don’t miss the 30 June deadline: Make sure any contributions you want to make this financial year are received by us on time. With electronic transfers (including BPAY® and employer contributions), the contribution takes effect the day we receive the money, not the day you make the transfer, or the date your employer pays you. So please don’t leave it too late and refer to our cut-off dates below in the tables.

 

End of Financial Year processing for 2020
Important information for cut-off dates

The end of financial year is a busy time but don’t leave your contributions until the last minute. Your contributions count for the year that they are received, not the date you make the payment. So, it’s important to note that if you'd like to make a contribution before the end of the 2020 financial year, it will take time to process your contributions.

How can you make a contribution to your WA Super account?

  • EFT (through your bank provider)
  • Real Time Gross Settlement RTGS (through your bank provider)
  • BPAY® (Simply login to your account online to access your unique BPAY details)
  • Cheque (Payable to WA Super, PO Box Z5493, St Georges Tce, Perth WA 6831)

 

Member voluntary contributions

If you wish to make voluntary contributions in this financial year (2019/20) the following cut- off dates apply:

PAYMENT METHOD

CUT-OFF INSTRUCTIONS

JUNE CUT OFF*

EFT

If your payment is processed on a bank business day before 6pm EST, it will be debited from your account that day, and will take approximately 2 business days to be credited to WA Super’s bank account

Payment is made no later than 4pm WST on Friday, June 26th.

Payment would arrive by Tuesday, June 30th.

RTGS1

If your payment is processed on a bank business day before 2:30pm EST, it will be debited from your account that day, and will be credited that same day (approx. by mid-afternoon) to WA Super’s bank account.

Payment is made no later than 12:30pm WST on Tuesday, June 30th.

BPAY

If your payment is processed on a bank business day before 6pm EST, it will be debited from your account that day, and will take approximately 2 business days to be credited to WA Super’s bank account.

Payment is made no later than 4pm WST on Friday, June 26th.

Payment would arrive by Tuesday, June 30th.

Cheque2

If you mail your cheque to the WA Super Office, please allow 4-5 business days to arrive via Post by Tuesday, June 30th.

Cheques are banked on the same day as receipt. Cheques must be received by Tuesday, June 30th.

 Notes:

*Contributions received after these dates will not be credited to your account in the 2019/2020 financial year. The member is to acknowledge that weekends and public holidays does not count as a business day.
1 The member’s bank will charge a fee for administrating
2 Any dishonoured cheques received on June 29th will not be recognised as a valid 2020 contribution.

 

Employer contributions
PAYMENT METHOD CUT-OFF INSTRUCTIONS JUNE CUT OFF*
Superstream Gateway1

If your payment is processed via the nominated Superstream Gateway provider on a bank business day before 2:30pm EST, it will be debited from your account that day, and will take up to a maximum of 5 business days to be credited to WA Super’s bank account.

Payment is released from the Gateway provider no later than 12:30pm WST on Tuesday, June 23rd.

Payment would arrive by Tuesday, June 30th.

 Notes:

* The employer is to acknowledge that weekends and public holidays does not count as a business day.
1 The employer would need to verify the cut-off time with the Gateway provider for an absolute cut-off day.
2 Any dishonoured cheques received on June 29th will not be recognised as a valid 2020 contribution.

 

Have a question?

Please call our Member Services team on 08 9480 3500.

The information provided contains general advice which does not take into account your specific objectives, financial situation or needs. Before investing, you should consider the appropriateness of this general advice with regard to your personal circumstances. You may also wish to obtain independent financial advice.

Investment returns can go up and down and are not guaranteed. All investments have risk, and past performance is not a reliable indicator of future performance.

For more information on risks associated with investing or before making a decision about WA Super, you should consider your financial requirements and read the Product Disclosure Statement available at www.wasuper.com.au or by calling us on 08 9480 3500

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