The end of the financial year is fast approaching – and this year, there’s a new way to help you save on tax while boosting your super.
By making an after-tax contribution to your superannuation before the end of the financial year, you could boost your retirement savings for the future – and claim a tax deduction now.¹
In the past, this strategy was only available to the self-employed and those earning less than 10% of their income as an employee. But since 1 July 2017, this strategy is also available to employees.
Here’s what you need to know:
Benefit today – and tomorrow
If you make super contributions from your after-tax income or savings, you may be able to claim them as a tax deduction and reduce your taxable income, while boosting your super.
The contribution will then be taxed in your super fund, generally at the concessional rate of up to 15% (or up to 30% for higher income earners). This is instead of paying tax at your marginal tax rate, which could be up to 47% (including the Medicare levy).
Depending on your circumstances, this strategy could result in a tax saving of up to 32% – and help you retire with more.