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The most popular EOFY questions advisers are asking revealed

The end of financial year (EOFY) is fast approaching.

BT has revealed the most popular EOFY questions that financial advisers have been asking in the April to June 2022 quarter.

In addition to the usual year-end to-do list, advisers have been asking questions on changes to downsizer contributions which was the most popular topic.

BT said clients looking to sell their home may not be aware that the eligibility age for making a downsizer contribution into super is coming down to 60 years of age. Prior to 1 July 2022, a person must be 65 or older to make a contribution.

“Notably, if your client is about to turn 60, it’s worth checking if they are eligible, bearing in mind that generally from the date of settlement of the property sale, the client has 90 days in which to make the downsizer contribution,” BT technical consultant, Tim Howard, said.

“The crucial date is when the client puts the money into super. For example, at settlement, your client may be age 59, then turn 60 from 1 July. They will still be able to make a downsizer contribution from their birthday if it falls within the 90-day period.”

BT noted that the superannuation guarantee (SG) increasing to 10.5 per cent in the new financial year should also encourage advisers to remind their clients about the change, as well as the fact that the $450 minimum threshold is being removed.

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From 1 July, employers must pay the SG regardless of how much employees are paid.

“The removal of the minimum threshold largely impacts younger workers, but also potentially older people working part time,” Mr Howard said.

“As many industries in Australia are experiencing labour shortages, former retirees who decide to return to work may be pleasantly surprised that they are earning super as part of their pay packet.”

Other queries brought to BT by local advisers included questions around superannuation members making personal contributions into super, cash levels and SMSF trustees accepting personal contributions into super.