With June 30 approaching, it’s time to make some smart decisions that could boost your future retirement income – and benefit you financially today.
Build your retirement nest-egg with these six tax-effective EOFY super strategies¹.
1. Get more from your salary or bonus
If you are an employee, have you thought about salary sacrificing? You could sacrifice part of your pre-tax salary or bonus into super – and you could potentially reduce the tax you pay by up to 34%.
2. Make tax deductible super contributions
If you’re self-employed or don’t work, you won’t get super from an employer – but that doesn’t mean you can’t contribute yourself. And if you do, you may be able to claim your contribution as a tax deduction.
This deduction also applies if you’re earning less than 10% of your income² from eligible employment and you contribute to your super.
3. Make after-tax contributions
Do you have an investment in your own name, such as shares, property or a managed fund? If you cash out the investment and put the proceeds into super, you could reduce the tax you pay on your investment earnings by up to 34%.
4. Manage your Capital Gains Tax through super
Does less than 10% of your income² come from eligible employment? If you’re planning on selling an asset this year – say, a property or shares – and you make a capital gain, you might want to consider investing some or all of the sale proceeds into your super.
This way, you may be able to claim some or all of the contribution as a tax deduction to reduce the assessable capital gain and the amount of tax you have to pay.
5. Get the government to chip in
If you earned less than $51,020² this financial year, and at least 10% of that amount was from your job or business, you should think about making an after-tax super contribution. If you do, the government may also chip in up to $500.
6. Boost your partner’s super – and reduce your tax
If your spouse earns under $13,800 per annum, consider making an after-tax contribution into their super account. Not only will they have a bit more cash put away for life after work, but you may receive a generous tax offset of up to $540.
Ask your adviser. Mr Tax Refund works with experienced Financial Services Firm Purple Circle. Call us today on 1300 943 410.
We can help you decide on the strategies that work best for you – so get in touch with us before the financial year ends.
¹ Super strategies should be used in consideration of contributions caps. Penalties may apply if these caps are exceeded.
2 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.