The end of the financial year is almost upon us and Chan & Naylor are writing just to remind you about some super contributions you can take advantage of.
For one, those who are working and have assessable income with reportable fringe benefits and employer super contributions below $51,813 may qualify for co-contributions or matching from the government. This means extra free money in your super.
Those who want to reduce their taxable income, on the other hand, may contribute to super before the 30th of June. Personal deductible contributions were previously for self-employed individuals only but it is now available to employees as well. Remember its limits though and make sure a notice of intent is submitted to the super fund.
Make sure your contributions are timely made – applied before the 30th of June, otherwise they might be counted against the limits of the next financial year. Don’t forget the contribution caps. For FY 2017-18, concessional contributions such as employer compulsory, salary sacrifice and member contributions where a tax deduction is claimed, are limited to $25,000 regardless of age. Note that employer insurance payments or fees may count against the limits because of additional contributions.
Meanwhile, you can also arrange for employee salary sacrifice as it is an effective way to reduce taxable income and increasing retirement savings. This is available to employees and those who work in their own company. There are limits as well so you better be mindful.
Last but not least, a tax rebate with a maximum of $540 may be available for after-tax contributions to super on behalf of a spouse with low income. Australia’s economic outlook remains positive so it is a good time to invest tax effectively. For questions about contributions, you can contact your accountant to discuss your individual situation.
If you would like to know more superannuation tips, you can click here to know more about Chan & Naylor services. You can leave your details here and we can schedule you for a free consultation. We’ll contact you to explain more.
Whether you are a beginner, seasoned investor or business owner, our property and business tax accountants can give you guidance to maximise the financial areas of your life. We can also give you an integrated and tailored solution for your superannuation, taxation, property investment, asset protection, estate planning and more.
Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales that can assist and provide you with more superannuation tips.