Kelly is 25 years old and working full time and earning $65,000 per annum, her superannuation balance is $20,000. If she continues just to receive her compulsory employers’ contributions paid into her superannuation, at retirement she will have a super balance of $483,000.
If Kelly starts salary sacrificing $5,000 per annum into super this will increase her super balance at retirement to $777,000 which is a massive increase of $294,000.
By making a $5,000 contribution to super, this will also serve as a tax deduction for Kelly by reducing her income tax payable by $1,800.
As of the 1st of July 2021, there were the following changes to superannuation:
To make an additional payment to super and be eligible to claim a tax deduction on the contribution, there is a couple of different ways this can be done, have your employer make the additional payments on your behalf by paying an additional amount from your wage every pay period. Alternatively, you can make a payment directly from your bank account and lodge a form to your super fund to claim a tax deduction.
If you would like to discuss how contributing to super will benefit you directly, please contact our office and book an appointment with one of our Financial Planners.
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