Finance Update with Jovan Cvetkoski – The Case for Hard Cash

By Jovan Cvetkoski, Financial Adviser and Director, Knight Group

14 min

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About this episode

Is there still a case for using cash? In this Finance Update, Jovan Cvetkoski, Financial Adviser and Director of Knight Group, explains why he sometimes advises clients to pay with cash: studies show people spend less when they physically see money leaving their wallet.

He covers how much you can withdraw from ATMs (a minimum of around $1,000, sometimes up to $2,000) and your rights around legal tender – a business that won’t accept cash must display a sign saying so.

The conversation then turns to the end of financial year, where Jovan revisits concessional super contributions and a detailed carry-forward strategy example showing a potential $18,000 personal tax saving. He finishes with general commentary on the share market’s response to the Strait of Hormuz tensions and how AI-linked companies have driven recent investment returns.

In this episode

Why does flashing physical cash actually stop you from overspending?

Jovan explained it’s psychological – when you physically hand over cash and watch it leave your wallet, you tend to spend less than when you tap a card. He said he sometimes advises clients to use cash for exactly this reason, and that studies back up the effect.

Can a shop legally refuse your cold, hard cash in Australia?

Jovan said most ATMs now let you withdraw a minimum of around $1,000, and some up to $2,000 – keeping pace with inflation. On acceptance, he explained that a business choosing not to take cash must display a sign saying so; otherwise cash is legal tender and you’re within your rights to expect it to be accepted.

What last-minute super move should you squeeze in before 30 June?

Jovan pointed to concessional contributions, capped at $30,000 including your employer’s super guarantee. You can also contribute after-tax money and claim a deduction, shifting the tax on that money from your marginal rate (say 30%) down to the 15% super rate. With only one pay cycle left in the year, he noted salary sacrifice makes less sense now than a one-off contribution.

Can catch-up contributions really slash your tax bill by thousands?

Jovan worked through an example: someone earning $100,000 with about $400,000 in super and $55,000 of catch-up contributions available. By contributing $55,000, their taxable income drops from $100,000 to $45,000, cutting their personal tax bill from $22,788 to $4,863 – a saving of roughly $18,000, even after the super fund pays 15% (about $8,250) on the contribution. He noted the five-year window rolls forward, so the oldest year is about to drop off – which is why it’s worth checking now via MyGov.

Who is actually set to make money from the AI revolution?

On markets, Jovan noted the share market had largely shrugged off the Strait of Hormuz tensions. The Australian market had been fairly flat for the year, with most returns coming from international, AI-linked companies. He offered general commentary that AI could automate many entry- and mid-level white-collar roles, while shareholders in AI and data-reliant companies could benefit. He mentioned examples such as the makers of large AI models, and data-heavy businesses like Amazon, Netflix, and Spotify. This was general market commentary, not a recommendation.

Key Takeaways

Paying with cash can curb spending because the outflow is visible – a simple budgeting tool.
Most ATMs allow withdrawals of around $1,000, and some up to $2,000.
A business that won’t accept cash must display a sign; otherwise cash is legal tender.
Catch-up contributions can produce large tax savings – around $18,000 in Jovan’s worked example.
Recent market returns have been driven largely by international, AI-linked companies (general commentary only).

Full episode transcript

Host: Jovan Cvetkoski joins us, talking money. There’s a lot of talk about cash not being around in the future – what’s the risk at the moment?

Jovan: I believe there’s been legislation, or at least talk, to make sure you keep access to cash, which I hope is the case. I sometimes advise certain clients to use cash, because all the studies show you actually spend less.

Host: Because you see it in front of you.

Jovan: That’s right – it’s psychological. Most ATMs today let you take out a minimum of about $1,000, and some let you go to $2,000, so it’s kept up with inflation. One thing to remember: if a business won’t take cash, they must have a sign up saying so. If there’s no signage, cash is legal tender and you’re within your rights to say, ‘Sort it out for me’.

Host: Coming into the end of the financial year, what should we note?

Jovan: The biggest one – we’re on 9 June, and you’ve got until 30 June to get extra money into super. Concessional contributions are made before tax and include the super guarantee your employer pays plus any personal contributions, capped at $30,000. Employer contributions are taxed at 15%. If you’re on a good salary and work puts in, say, $20,000, you could put in $10,000 of your own money and claim a tax deduction, which lowers your personal taxable income.

Host: So money that’s already in your bank account after tax?

Jovan: Yes – money in your bank account, from shares, an inheritance, an offset, or borrowed. Put it into super, up to $30,000, and claim a deduction. If you earn $100,000 and put $10,000 in, instead of paying 30 cents on that $10,000, you pay 15 cents. Check your pay slip or super fund for how much has already gone in.

Jovan: There’s also catch-up. If you have less than $500,000 in super as at 1 July last year – July 2025 – you’ve got the previous five years of caps available. Say you’ve got $400,000 in super, you’ve inherited money, and you earn $100,000. You might have $55,000 of catch-up available. Normally you’d pay $22,788 in tax. Put $55,000 into super and your taxable income drops to $45,000, and your personal tax bill falls to $4,863 – you’d save about $18,000 personally. The super fund pays 15% on the $55,000, about $8,250, but your net saving is still around $10,000. It results in a big refund. The MyGov ATO super tab tracks your catch-up for you – and the window rolls every five years, so the oldest year is about to drop off.

Host: With everything going on in the world, what are people asking?

Jovan: Mostly, ‘How has this affected my super?’ And honestly, until last Friday night the share market basically ignored it – it’s betting the Strait of Hormuz crisis will be resolved. Our Aussie market has been pretty flat for the year; most of the earnings have come from international shares, the big AI-linked companies.

Host: Who benefits from AI in the future?

Jovan: The way I see it, AI will probably automate many entry- and mid-level white-collar jobs – that’s the dark side. Who makes money? The shareholders of these companies – the ones who own the AI models – and any company that makes money off data, like Amazon, Netflix, or Spotify. That’s general commentary, not advice.

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General Advice Warning

This information is of a general nature only and does not take into account your financial situation, needs or objectives. You should therefore consider whether the information is appropriate to your situation before acting on this information. If any financial product is referred to, you should consider the relevant PDS or other disclosure material before making an investment decision in relation to that financial product.