A New Path for Super Contributions
In the past, it was a rarely possible that a salary earner could make a superannuation contribution for which they claimed a personal tax deduction. Unless they had an employer who was agreeable to salary sacrificing, claiming a tax deduction for superannuation contributions was typically only available to people running their own business.
However, from July 2017, anyone can claim a tax deduction for contributions they make to superannuation from their own money. Though this is capped at $25,000 per year and any contributions made by an employer will also use up that limit, the new arrangement does open up some new opportunities. This may be of benefit to those people who are unable to make salary sacrifice contributions through their employer.
Have you ever seen how much tax you’ve paid on a bonus, and wished you’d put some of it into super as an extra salary sacrifice contribution?
Have you ever reached the end of the financial year with more cash than anticipated, and wondered if there is any way you can contribute it to super and reduce your personal tax bill at the same time?
If so, the new path for deductable super contributions means it’s time to think differently. Instead of fixating on new limitations to super, it’s time to explore the new rules that help those still saving to put more into their super account with the best possible tax treatment. Previously, there were only two ways for most people to voluntarily make extra superannuation contributions - salary sacrifice contributions through their employer or as contributions that are not tax deductable. The new arrangements make tax deductable superannuation contributions more widely available and easier than ever.
If you want to learn more about how this could apply to you, call us on 3510 1333 for your free initial consultation.