– Let’s start with the easy money. Low-income earners should make a personal superannuation contribution so that they qualify for the government’s superannuation co-contribution payment. (2012 – $500 totally for free if you contribute $1000).
– Currently, strategies exist that allow you to draw a pension from your super fund and re-contribute amounts to the fund, reducing tax significantly, while maintaining your same net cash. Don’t leave it to the last minute to set this up though.
3. Contribution caps
– Make sure that you don’t contribute more than the annual concessional contribution cap of $25,000 (2012 – $50,000 for those aged 50-74) or risk being subject to an excess contributions tax of 46.5%. Taxpayers are often brought undone by forgetting contributions to an industry fund while salary sacrificing into their own SMSF.
For employers to get a tax deduction for the super that they pay for their employees (SGC, additional contributions and salary sacrificed amounts) they need to actually pay the contributions to the funds before 30 June in order to obtain a deduction, and to avoid the Superannuation Guarantee Charge.
5. Personal Superannuation
You can claim a deduction for personal superannuation contributions if your salaries and wages income is less that 10% of your total income.
Call Noel or Amanda for more information – (03) 9585 7555 or firstname.lastname@example.org