Super Contribution Strategies
Take advantage of options available to you to maximise your super balance so you can enjoy the benefits of compound interest.
Superannuation strategies, such as carry forward concessional catch-up contributions allow individuals to contribute more to their super and claim a tax deduction.
Consider what type of contribution is best for you, to help make the most of your super.
- Talk to your employer about sacrificing part of your salary into your super fund, which will reduce your taxable income and make it easier to commit to regular contributions that increase your super balance.
- Check options available for your spouse – it could benefit both of you if you’re able to contribute to their fund as well as your own.
- Consider making personal super contributions as a tax deduction – this will require the ATO Notice of Intent form to be submitted to the super fund.
- Take advantage of the bring-forward rules if you haven't contributed the maximum amount of super in recent years.
- Make downsizer contributions from the proceeds of the sale of your home.
- Check whether your super fund is paying for any insurance – review and adjust or cancel if the insurance is not required.
- Consolidate super into one fund so you are not paying more fees than you need. If you're unsure which fund you have accounts with, search for lost super in case you have multiple accounts that you can consolidate.
- Make contributions from your after-tax earnings – this may be a good option if you receive unexpected extra income such as a bonus. The government will also make a co-contribution of up to $500 for eligible low to middle income earners.
Get Advice for Your Super Strategies
Individuals can carry forward unused concessional contribution cap amounts accrued from 1 July 2018, but only if their total super balance is less than $500,000. To utilise this strategy, business owners should review their total super balance and previous years’ concessional contributions. Making additional super contributions can not only help save for retirement but also reduce taxable income.
If a small business owner combines strategies like carry forward contribution combined with dividends paid from the trading business that might create a generous tax refund at a personal level. If you are unsure about the level of concessional catch up contributions remaining for you speak to us today.
It’s important to get financial or tax advice before making any large payments to your super fund, to ensure you’re getting the most tax benefits from your contributions. There are limits to how much you can add to your super fund in a financial year and other thresholds that apply to different types of contributions.
