How to Increase your Super and Save Tax

Increasing super whilst saving tax 2 min read

From the 2017-2018 financial year and onwards, the government has allowed everyday Aussies to catch up on any unused concessional super contributions. For those of you who are unfamiliar with concessional contributions and their associated caps. This is an opportunity for Australians to contribute extra money to their super and claim the contributions as a tax deduction or pre-tax. The downside is a limit that restricts how much extra super contributions you and your employer can put in for you to be able to claim a tax deduction. In previous years the cap was 25,000 with recent changes to 27,500. However, many Australians are unfamiliar with this rule and the Australian Government wants people to fund their own retirement. The government has released a scheme called the Carry Forward Rule. Essentially this rule permits Australians to catch up on any used amounts as long as their balance is under $500,000.

This is a great strategy to quickly reduce capital gains tax or other large tax bills.

Please keep in mind the contents of this article are general in nature and should not be taken as personal advice. For qualified personal advice around how to increase super and reduce tax effectively. Please speak to our financial advisors who service the Yarraville, Seddon, Kingsville, Williamstown and Altona areas.