Important Updates

This newsletter includes a range of information, including: 

  • Around the Office - Jessica Hof & Alisha Gunning

  • Investing in Volatile times

  • End of Financial Year

  • Super changes from 1 July 2022

  • SGC Increase to 10.5%

Around the Office - Jessica Hof & Alisha Gunning

Financial Planner Jessica Hof has now commenced her maternity leave. We wish Jess and Matt all the best as they start their new life as a family. Jess will be back in 2023.

We welcome Alisha Gunning to our Financial Planning team. Alisha is currently studying a Bachelor of Commerce at Canberra University whilst working full time under our cadet program.

Alisha has moved from Bathurst to join the team. She is enjoying living in Wagga and looks forward to assisting clients and helping advisors as she learns more about financial planning.

Investing in Volatile Times

Recent volatility from sharemarkets has reminded us in of the importance of understanding your overall financial goals and objectives.

You will often hear Ann, Jess and I explain long term investing with the phrase….  “it’s time in the market, not timing the market”,  with good reason – it often holds true. One of the key elements of successful investing is patience, as a long-term mindset is required to achieve investment goals.

Returns in the short-term can be unpredictable and volatile, so investing with a short-term focus produces difficulties and can be counterproductive. We have attached a recent article from Shane Oliver, well respected Chief Economist at AMP Capital. “Another five great charts on investing that are very useful in times of uncertainty like the present”. If you wish to discuss current market conditions, we are only a phone call away.

EOFY Important Cut Off Dates

To ensure your superannuation contributions are received by 30th June 2022, we recommend making them by BPay no later than 5pm on Friday 24th June 2022. This deadline will vary from providers.

Please check with your specific super fund on their cut off times.  

Super Changes from July 1st 2022

Eligibility to contribute to super

Up until 30 June 2022, it is a super law requirement that to make voluntary super contributions (except for a downsizer contribution) while between age 67 and 75, the work test must be met.

However from 1 July 2022, the work test no longer applies to voluntary super contributions. This change will allow many to add funds to super or adopt estate planning  strategies even after you are fully retired.

However, the work test is not completely gone, as it is still relevant from 1 July 2022 if you intend to claim a tax deduction for personal super contributions over the age of 67.

SGC Increase to 10.5%

From 1 July 2022, the Superannuation Guarantee (SG) rate will increase to 10.5%. However, the annual concessional cap will remain at $27,500. As a result, the increase in SG may reduce the amount of spare concessional cap available during the financial year. It is therefore important to review strategies relating to concessional contributions, such as salary sacrifice amounts to ensure you do not inadvertently exceed your concessional contributions cap.

Cristy Houghton