Get Super Smart Before the End of Financial Year
Want to boost your retirement savings while potentially saving on tax? Here are three of many potential strategies to consider before the end of the financial year.
1. Convert your savings into super savings
One way to invest more in your super is with some of your after-tax income or savings, by making a personal non-concessional contribution. Although these contributions don’t reduce your taxable income for the year, you can still benefit from the low tax rate of up to 15% that’s paid in super on investment earnings. This tax rate may be lower than what you’d pay if you held the money in other investments outside super.
2. Get a super top-up from the Government
If you earn less than $51,813 in the 2017/18 financial year, and at least 10% is from your job or a business, you may want to consider making an after-tax super contribution. If you do, the Government may make a co-contribution of up to $500 into your super account.
3. Boost your spouse’s super and reduce your tax
If your spouse is not working or earns a low income, you may want to consider making an after-tax contribution into their super account. This strategy could potentially benefit you both: your spouse’s super account gets a boost, and you may qualify for a tax offset of up to $540.
You’ll need to meet certain eligibility conditions before benefitting from any of these strategies. If you’re thinking about investing more in super before 30 June, call Taylor Financial Advice and Solutions on 3510 1333. We offer free initial appointments without obligation, and we have free workshops on maximising retirement income.