Tax Savings In Your Super Contributions

As we are fast approaching the end of the financial year, now is a good time to take stock of your potential tax savings by utilising ‘concessional contributions’ made to your superannuation.

As an added bonus the money invested inside your superannuation is taxed at 15% rather than your individual tax rate (which would be 32.5% for someone earning $60,000 per annum).

If you are lucky enough to be over 60, and still working, you also have access to a Transition to Retirement pension, where you have access to up to 10% of your pension tax free. Which you can in turn recontribute back into superannuation and claim as a tax deduction.

To maximise you tax savings it isn’t always best to utilise your full catch up contribute amount in one year, you are best to seek financial advice to plan around whether to do it in one or more years.

Please call one of our advisors to chat about how we can help with the concessional contributions or your super in general.