A super idea for superannuation
Superannuation is a very unexciting thing. You give your hard earned money away to someone to invest. Then in a very long time, you get it back to effectively pay you a salary once you stop working. So you are never really better off — you just use your savings to hopefully continue living the same lifestyle.
But getting a tax deduction and saving tax is much more exciting. Especially this time of year when we all start to think about finding receipts and scrambling to ask “can I claim that?”.
Super contributions have always been tax-deductible, but most people need to plan ahead and set up regular contributions via their employer if they want to get the most out of the tax-concessional nature of contributions.
But not anymore!
From 1 July 2017, anyone who meets the super contribution requirements will be able to make tax-deductible contributions (called concessional contribution) from their own money, up to the annual limit of $25,000.
While the ideal situation is still to salary sacrifice a regular amount each pay period (out of sight, out of mind), it simple means that anyone can add extra to their super account at any time during the year from personal cash.
But most people won’t do this until they get to June each year and start thinking “what else can I claim?”. An even better idea would be to put your tax refund straight in, which in turn will help next year’s refund.
But no matter when or how it happens, super contributions are a super, and now simpler, thing to do.
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