A super opportunity for you this year

28 Aug 2017

By Shadforth Financial Group

While the contribution limits for super have gone down this year, there’s still opportunities to take advantage of the generous tax environment super offers.

Make the most of your before-tax contributions
Concessional contributions are contributions you can make to super with your before-tax salary. For most people concessional contributions are taxed at just 15 per cent — not your marginal tax rate. That’s a big tax cut and puts your money to work — in your super account.

This financial year, you’re allowed to contribute, or ‘salary sacrifice’, $25,000 of concessional contributions. Remember - your employer’s 9.5 per cent compulsory contributions count towards your concessional contributions. And, from 1 July 2018 new rules let people with total super balances under $500,000*, ‘carry forward’ up to five years of the unused portion of their concessional contributions cap.

So, how much tax can you save?
If you earn $100,000 and put $10,000 into your super you can benefit by up to $2,400 per year, as the table shows. However depending on your salary,
the benefit may be even greater.

How do you get started?
Whether you’d like to make a one-off contribution or set up an ongoing arrangement, speak to your financial adviser and contact your employer’s payroll department.

If you’re considering taking advantage of the tax benefits of making concessional contributions or want to understand more about the super opportunities on offer, please talk to your Private Client Adviser.

* Your total super balance is the total value of your super in both accumulation and retirement phase — at the end of the previous financial year.

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