A reminder that as 30 June is approaching, that individuals can now contribute directly to their super and claim a tax deduction. If you have spare financial capacity, this may be a great way of saving on tax and boosting your retirement income.
Individuals can contribute up to $25,000 per annum. Note that is amount includes compulsory and additional employer superannuation contributions. E.g. an individual on $100,000 per annum would have 9.5% / $9,500 contributed to their super by their employer. You can make an additional $15,500 contribution to your super from personal funds, and claim a tax deduction.
* the above does not apply for defined benefit schemes such as PSS/CSS, FirstState, and other restricted retirement schemes.
What you need to do:
– determine whether a super contribution is right for you. You should always seek advice before making concessional contributions. Jigsaw Tax or your superannuation fund can help you. If you are earning less than $50,000 in taxable income, you must seek professional advice first, as there may be additional tax consequences.
– pay a contribution to your superannuation fund.
– advise your superannuation fund that you wish to claim a tax deduction. This can be done at a later point, but before you lodge your tax return. Your superannuation fund will require you to lodge a “Notice of intent to claim or vary a deduction for personal super contributions”.
– wait for confirmation from your Superannuation Fund and provide to your tax agent.