With the end of the financial year fast approaching (is it just me or does every year pass by quicker than the last?) its timely to think of some end of financial year strategies that can be used to maximise your superannuation and reduce the amount of tax you pay.
Here is my hot list:
If you’re an employee, think about increasing your salary sacrifice contributions for the rest of the financial year. This will reduce the tax on your salary or bonus by up to 31.5% depending on your marginal tax rate.
If you earn less than 10% of your income from eligible employment (eg you are self employed or not employed), you may want to invest in super and claim your contribution as a tax deduction. The deduction will offset income and save on tax
For those earning less than $46,920, of which at least 10% is from employment or business, they may wish to consider making an after tax super contribution to qualify for a Government co-contribution of up to $500
If your spouse earns less than $13,800, consider making an after tax super contribution on their behalf and receive a tax offset of up to $540
As with any superannuation strategies, its really important to seek advice before doing anything. Mistakes can be costly, especially where super contribution caps are exceeded.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.